Now Tocilizumab, Amphotericin B tax-free, GST Council reduces tax rate on COVID essentials, Details

Published On 2021-06-12 14:25 GMT   |   Update On 2021-06-14 10:21 GMT
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New Delhi: The Goods and Services Tax (GST) Council on Saturday has announced a significant reduction in the tax rate to 5 percent on 14 major Covid-19 essentials, including testing kits and hand sanitisers.

This came during the 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today.

The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs.

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The Council in its meeting has decided to reduce the GST rates on the specified items being used in Covid-19 relief and management till 30th September 2021.

Among the significant tax reductions, the GST Council has cut the tax rate from 12% to 5% on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices.

While GST on black fungus or mucormycosis drugs like Tocilizumab and Amphotericin B is slashed to nil from 5 per cent, the rate on Remdesivir and anti-coagulants like Heparin is lowered from 12 per cent to 5 per cent.

Earlier tax brackets prevailed in the range of 12% and 18%.

The details of recommendations are given below :

S. No.

Description

Present GST Rate

GST Rate recommended by GST Council

  1. Medicines

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 Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment

Applicable Rate

5%

  1. Oxygen, Oxygen generation equipment and related medical devices

1.

Medical Grade Oxygen

12%

5%

2.

Oxygen Concentrator/ Generator, including personal imports thereof

12%

5%

3.

Ventilators

12%

5%

4.

Ventilator masks / canula / helmet

12%

5%

5.

BiPAP Machine

12%

5%

6.

High flow nasal canula (HFNC) device

12%

5%

  1. Testing Kits and Machines

1.

Covid Testing Kits

12%

5%

2.

Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH

12%

5%

  1. Other Covid-19 related relief material

1.

Pulse Oximeters, incl personal imports thereof

12%

5%

2.

Hand Sanitizer

18%

5%

3.

Temperature check equipment

18%

5%

4.

Gas/Electric/other furnaces for crematorium, including their installation, etc.

18%

5%

5.

Ambulances

28%

12%

These rate reductions/exemptions shall remain in force upto 30th September 2021.


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