CBIC notifies GST rate cuts on Covid-related medicines, equipment

 







New Delhi: The Finance Ministry has notified nil or lowered rate of GST on 18 individual Covid relief products. The GST Council, in it meeting on June 12, had slashed tax rates on critical medication and paraphernalia related to Covid-19 infection.

The decision to slash tax rates on Covid relief items was taken on the basis of recommendations from a group of ministers (GoM) formed after the 43rd GST Council meeting.

The reduced rates will remain in effect till September 30, 2021, the Gazette notification read. The rationalisation in GST rates will also apply to existing stocks of Covid relief items.

The Board has rescinded the notification imposing 12 per cent integrated goods and services tax (IGST) on oxygen concentrators, imported for personal use.

The rate reduction has been done, “on being satisfied that it is necessary in the public interest to do so, on the recommendations of the Council,” the Board said.

The matter of IGST on imports of oxygen concentrators is currently pending in the Supreme Court, and is likely to be heard towards the end of the month. The SC had stayed a Delhi High Court order that had declared as ‘unconstitutional’ IGST on oxygen concentrators imported as gifts for personal use.

While the rate has been reduced to 5 per cent from 12 per cent on concentrators, experts said that the apex court’s decision would be on the validity and constitutionality of the levy of IGST and its complete exemption.

Remdesivir, which has become immensely popular over the past few months for treating Covid patients, will now be taxed at 5 per cent instead of the earlier 12 per cent. In a recent advisory, health authorities have called for cautious use of the drug as it can have potential side effects and is relatively costlier too.

GST rates on Tocilizumab and Amphotericin B, which are used for treating Covid-19 and black fungus, respectively, have been waived off completely from the earlier 5 per cent. Meanwhile, anti-coagulants like Heparin will be taxed at 5 per cent now instead of 12 per cent.

The GST Council had decided that any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Department of Pharmaceuticals (DoP) for Covid treatment will be taxed at 5 per cent.

Medical grade oxygen will now be taxed at 5 per cent instead of 12 per cent. Meanwhile, oxygen concentrator or generator, including those imported in personal capacity, ventilators, ventilator masks, canula or helmet, BiPAP machines, and High Flow Nasal Canula (HFNC) device will also attract 5 per cent tax instead of 12 per cent.

Covid testing kits as well as specified inflammatory diagnostic kits, namely D-Dimer, IL-6, Ferritin and LDH, will now be taxed at 5 per cent instead of the earlier 12 per cent.



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