Monday 14 June 2021

GST Council decides to reduce tax rates on items related to Covid relief


 

This Tax Alert summarizes a recent press release1 issued by the Ministry of Finance. The 44th meeting of Goods and Services Tax (GST) Council was held on 12 June 2021. 

 

The Council has decided to reduce GST rates on the following items being used in Covid-19 relief and management. The said reduction shall remain in force till 30 September 2021. 

 

 

Particulars

Earlier rate

Revised rate

Tocilizumab and Amphotericin B

5%

Nil

Anti-Coagulants like Heparin and Remdesivir

12%

5%

Any other drug recommended by Ministry of Health and Family Welfare and Dept. of Pharma for Covid treatment

Applicable rate

5%

Oxygen, Oxygen generation equipment and related medical devices

12%

5%

Testing Kits and Machines

12%

5%

Pulse Oximeters, incl personal imports thereof

12%

5%

Hand Sanitizer, Temperature check equipment, Gas/Electric/other furnaces for crematorium, including their installation, etc.

18%

5%

Ambulances

28%

12%

 

Government will issue necessary Notification in this regard. GST rate on Covid-19 vaccines remain unchanged at 5%. The rate cut is likely to benefit public at large. 

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