5% GST on Goods Giving Relief from Covid- India
A group of 8 ministers was constituted by the GST Council to fix the rates of Goods and Services Tax (GST) on the goods giving relief from Covid. This group of ministers has suggested a reduction in GST rates. This information has been given in a media report quoting sources familiar with the matter.
Express my gratitude towards the President of GST Council & its members for accepting the recommendation provided in the 43rd GST Council meeting. The GST concessions provided on covid related items will surely help the States to make the fight against covid financially feasible. pic.twitter.com/tChf2plCFS
— Ajit Pawar (@AjitPawarSpeaks) June 12, 2021
The rate of tax on the vaccine should be fixed by the GST Council.
The Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, has suggested a 5% GST on most COVID relief items. According to sources, the items on which the GoM has suggested reducing the GST rate include medical grade oxygen, oxygen concentrator, pulse oximeter and COVID testing kits.
Apart from this, the GoM has suggested that the rate of tax on the Covid vaccine should be fixed by the GST Council. The GST Council may meet soon to consider the suggestions of the Group of Ministers.
Tax exemption on medicines related to black fungus
The Group of Ministers has suggested exemption from tax on drugs used in the treatment of black fungus. In a meeting of the GST Council held on May 28, a tax exemption was announced on the import of Amphothracin B, a drug used in the treatment of black fungus.
In this meeting, it was decided to constitute a Group of Ministers regarding tax exemption on the vaccine and other medical equipment of Covid-19. This group of ministers has to submit its recommendations by June 8.
The fitment committee made these recommendations
The fitment committee of GST had last month recommended to the council to reduce the tax rate on Covid-related goods to 5%. The fitment committee had recommended a reduction in rates by July. The fitment committee had recommended not to change the rates on PPE kits, hand sanitisers, ventilators, N95 surgical masks and ambulances.
The tax rate on Drugs
At present, 5% GST is being charged on the domestically made Kovid vaccine. At the same time, 12% GST is being levied on medicines and oxygen concentrators related to Covid.
Common people including opposition parties, social organizations are demanding a reduction in GST rates on medicines and other devices related to Covid. So that the common people can get the medicines of Kovid at affordable rates.