No tax on Black Fungus Medicine, 5% Tax on Covid vaccine will continue
The 44th meeting of the Goods and Services Tax (GST) Council is over. Giving information about the decisions taken in the meeting, Finance Minister Nirmala Sitharaman said that in the meeting it has been decided to abolish the tax on medicines of black fungus.
Apart from this, the tax rates have also been cut on other equipment including medicines and ambulances related to Corona. In the meeting, it has been decided to continue with 5% GST on the vaccine of Covid. This reduction in GST rates will be applicable till September.
Now 12% GST on Ambulance
In the meeting of the GST Council, there has been a huge cut in the tax rates on the vehicles used for the movement of patients i.e. ambulances.
Finance Minister Nirmala Sitharaman said that the council has decided to reduce the rate of GST on ambulances to 12%. So far, GST is being charged on ambulances at the rate of 28%.
Tocilizumab and amphothracin-B are used in the treatment of black fungus. These attract 5% GST. The council has decided not to charge GST on these medicines.
Taxes were also reduced on these
- Reduced from 12% to 5% on the oximeter.
- Tax on hand sanitiser reduced from 18% to 5%.
- Reduced from 12% to 5% on ventilators.
- Did 12% to 5% on remdesivir.
- Reduced from 12% to 5% on medical grade oxygen.
- Tax on BiPAP machines reduced from 12% to 5%.
- Tax on pulse oximeter reduced from 12% to 5%.
- The reduced tax rate on oxygen concentrator from 12% to 5%.
- Reduced tax on electric furnaces from 12% to 5%.
- Tax on the temperature measuring instruments reduced from 12% to 5%.
- Reduced tax on high-flow nasal cannula devices from 12% to 5%.
- Tax on Heparin drug reduced from 12% to 5%.
- 5% tax on Covid testing kits instead of 12%.
Approval of the recommendations of the Group of Ministers
The GST Council, in its meeting held on May 28, had decided to constitute a group of 8 ministers to consider the tax rates on drugs and goods used in the treatment of covid and black fungus.
The 44th GST Council held under the Chairmanship of FM Smt @nsitharaman has decided to reduce the GST rates on the specified items being used in COVID-19 relief and management till 30th September, 2021.
Read more➡️ https://t.co/kUU8PzaUQq
— Ministry of Finance (@FinMinIndia) June 12, 2021
Finance Minister Nirmala Sitharaman said that after approving the recommendations of the Group of Ministers, it has been decided to cut rates.
No tax deduction on RT-PCR machine
In the meeting of the GST Council, no tax has been cut on many other items related to Kovid. There has been no reduction in tax rates on RT-PCR machines, RNA machines and genome sequencing machines.
These are taxed at the rate of 18%. In addition, the 12% tax on Genome Sequencing Kits has also been retained. There has also been no reduction in tax rates on the raw material used in making the Kovid Testing Kit.
GST on the vaccine does not affect the general public
During the press conference, Finance Minister Nirmala Sitharaman said that the central government is buying 75% of the vaccine and is also paying GST on it. This 75% vaccine is being made available free of cost to the people in government hospitals.
In such a situation, the GST on the vaccine will not have any effect on the general public. On the other hand, Union Minister of State for Finance Anurag Thakur said that the Modi government has made a provision to give free Covid vaccine to all people above 18 years of age.
GST on medicines reduced from 12% to 5%. In the fight against Covid, the GST on relief material has also been reduced to 5%.