The current
tax rate on ventilators, medical-grade oxygen, COVID-19 test kits, oxygen
concentration, and BPAP machines has been reduced to 5 percent. The current 18
percent GST on hand sanitizers and temperature control equipment has been cut
to 5 percent.
After the two weeks 43rd GST Council meeting on May 28, 2021, Union F Nirmala Sitharaman
chaired the 44th GST Council meeting. An important settlement has been taken to
reduce the GST rate on COVID-19 war essentials such as ambulances, remedial medicine,
the Remdesivir medicines, electric stoves, temperature control equipment, and
more.
The meeting
began on June 12, 2021, at about 11:15 p.m. Shortly afterward, the Union FM
informed the media about the outcome of the meeting. At the address, the Finance Minister declared that the GST Council had taken reasonable steps proposed by the Group
of Ministers (GOM). Moreover, the GST rate on ambulances has been reduced from
28% to 12% and this has not been changed against GOM’s previous proposal.
Similarly, the other two items, electrical furnaces, and temperature equipment
have also dropped from 18% to 5%.
GST Rates on covid -19
essentials and vaccine:
The
GST taxes were taken without changes on the COVID-19 vaccines at 5 percent N95,
& surgical and further triple-layer
masks remain taxed at 5 percent GST. In addition,
RT-PCR machines and PPE kits continue to collect GST at 18% and 5%, while
genomic sequencing kits will have tax at 12%. In addition, portable hospital
units will be taxed at 18%.
The
rate amendments suggested by the GST Council are as follows and will be valid until
September 30, 2021, after being notified by the CIC. Earlier, it was proposed
to provide relief until August 31, 2021.
GST on covid and black
fungus medicines:
- The GST Council has approved a reduction of 12% to 5% for Remedsiver and a nil tax will be levied on Tocilizumab.
- The Ministry of Finance has announced that no GST will be
levied on the antifungal drug used for the treatment of black fungus.
- At the 44th GST Council Meeting, it was announced that GST on
anti-coagulants, such as heparin, has now been reduced from 12 percent to 5
percent.
Here are the details of recommended
GST rates cut on 44 GST council Meeting:
|
Sl. No.
|
Medicines
|
Present GST Rate
|
Recommended GST Rates
|
|
1
|
Tocilizumab
|
5%
|
Nil
|
|
2
|
Amphotericin B
|
5%
|
Nil
|
|
3
|
Anti-Coagulants like
Heparin
|
12%
|
5%
|
|
4
|
Remdesivir
|
12%
|
5%
|
|
5
|
Any other drug recommended
by the Ministry of Health and Family Welfare (MOHFW) and Dept. of Pharma
(DOP) for Covid treatment
|
Applicable Rate
|
5%
|
GST On Other Medical
Device, GST Oxygen, Oxygen generation Equipment:
The
stipulation for this specialty has increased significantly recently as a result
of corporate corruption. This vital gas will now attract 5 % tax instead of 12 %.
|
SL NO
|
Description
|
Present GST Rate
|
GST Rate recommended by GST Council
|
|
1
|
Medical Grade Oxygen
|
12%
|
5%
|
|
2
|
Oxygen Concentrator/ Generator, including personal
imports
|
12%
|
5%
|
|
3
|
Ventilators
|
12%
|
5%
|
|
4
|
Ventilator masks / canula / helmet
|
12%
|
5%
|
|
5
|
BiPAP Machine
|
12%
|
5%
|
|
6
|
High flow nasal cannula
|
12%
|
5%
|
GST ON Covid Testing Kits:
According to
a press release issued by the Ministry of Finance after the 44th GST Council
scam, the GST rate on Covid testing kits and a specific inflammatory diagnosis
have now been reduced from 12% to 5%.
|
SL No
|
Testing Kits and Machines
|
Present GST Rate
|
GST Rate recommended by GST Council
|
|
1
|
Covid Testing Kits
|
12%
|
5%
|
|
2
|
Specified Inflammatory Diagnostic Kits
|
12%
|
5%
|
Other
Covid Relief Items:
- In pulse oximeters, individuals imported for personal use
will also see a 5 percent GST rate compared to the original 12 percent.
- The tax rate for hand sanitizers and temperature control
equipment has been reduced from 18 percent to 5 percent.
- Gas, electric bicycles, or other stoves for a cremation and
their installation will be charged 5 per cent instead of 18 per cent GST Registration .
- The ambulance has been removed from the additional 28 % tax
slab and a comparatively nominal 12% slab has been placed.
