Now Tocilizumab, Amphotericin B tax-free, GST Council reduces tax rate on COVID essentials, Details
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.
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. | 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. | 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. | Covid Testing Kits | 12% | 5% |
2. | Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| |||
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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