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 44^th 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.