The GST Council on Saturday decided to retain the rate of 5 per cent on Covid vaccine, while lowering rates on medicines and other Covid relief materials including ambulance till September 30.
“The Council has accepted the recommendation of Group of Ministers with some changes in suggestions related with some items,” Finance Minister Nirmala Sitharaman said in a press conference after half day-long meeting of the Council. The meeting had single agenda and that is to consider rates on various Covid materials.
Commenting on unchanged rate of vaccines, she said that the government is procuring 75 per cent of production for free jabs. Centre will pay the GST. Now, whatsoever GST is collected on the procurement, approximately 71 per cent will go to States, she explained.
She also mentioned that relaxation in rates on other Covid relief materials could be extended beyond September 30, if required.
MS Mani, Senior Director with Deloitte India, said: “While the reductions on medication and equipment are good welfare measures, curtailment of the exemption period would make it difficult for businesses to plan new investments and expand their supply chains in order to ensure that they reach all corners of the country. Businesses engaged in their manufacture and trading would hope that the period is extended beyond 30th September.”
Rates (in %)
Items
Items | Present rate | Revised rate |
|---|---|---|
Tocilizumab | 5 | Nil |
Amphotericin B | 5 | Nil |
Anti-Coagulants like Heparin | 12 | 5 |
Remdesivir | 12 | 5 |
Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment | Applicable Rate | 5 |
Medical Grade Oxygen | 12 | 5 |
Oxygen Concentrator/ Generator, including personal imports thereof | 12 | 5 |
Ventilators | 12 | 5 |
Ventilator masks / canula / helmet | 12 | 5 |
BiPAP Machine | 12 | 5 |
High flow nasal canula (HFNC) device | 12 | 5 |
Covid Testing Kits | 12 | 5 |
Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12 | 5 |
Pulse Oximeters, incl personal imports thereof | 12 | 5 |
Hand Sanitizer | 18 | 5 |
Temperature check equipment | 18 | 5 |
Gas/Electric/other furnaces for crematorium, including their installation, etc. | 18 | 5 |
Ambulances | 28 | 12 |