- GoM attended the 44th GST Council meeting chaired by Union Minister Ms Sitharaman
- GST on COVID-19 essentials revised to 5%
- New Tax Rates to be valid across August
New Delhi: The 44th meeting of the Goods and Service Tax Council on Saturday chaired by Union Minister Nirmala Sitharaman announced major cut downs on COVID-19 essentials.
Approving all recommendations by the (GoM) Group of Minister’s rate rationalization proposal, the GST Council revised the rates of the following 4 categories namely, medicines, oxygen, oxygen-generation equipment, testing kits, and other machines, and other Covid-related relief material. The GoM, set up by the Council on May 28, was mandated to look at tax exemption and concessions on these items and submit a revised GST sheet.
As per the revised GST Chart, GST on ambulances is reduced to 12%, while a uniform 5% GST will be applied on medical oxygen, ventilators, pulse oximeters, testing kits. “Today’s meeting was a single-agenda meeting on the Group of Ministers which was constituted in the last GST Council meeting to come up with recommendations on tax relief for Covid-19 essentials,” said the Finance minister.
Informing the revised tariff she stated that GST on the vaccine would be stable at 5%. The Centre will buy the 75% vaccine as announced and will pay its GST too. But 70% of income from GST will be shared with states,” added Sitharaman. However, GST on Amphotericin-B, a drug used in the treatment of Black Fungus was nullified.
Additionally, GST on electric furnaces and temperature checking equipment was slashed to 5%. The above-stated tax plan will be applicable until August ends following which the plans will be re-verified.