Finance Ministry notifies concessional GST rate on Covid-19 essentials
New Delhi: Through a recent gazette notification, the Finance Ministry has notified the concessional rate of Goods and Services Tax (GST) that will be applicable on COVID essentials till September 30, 2021.
Also, a lower Goods and Services Tax (GST) of 5 per cent will be applicable for work contracts for construction, repair or maintenance of electric furnaces meant for funeral, burial or cremation of the deceased.
The Revenue Department of the Finance Ministry announced decreased rates for 18 COVID-related products on June 14, including hand sanitizer, pulse oximeters, BiPAP machines, testing kits, ambulances, and temperature check equipment. These reduced prices will be in effect until September 30, 2021, according to the gazette notification.
The gazette notification stated that in exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) (hereafter in this notification referred to as "the said Act"), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the goods specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as the case may be, as specified in the corresponding entry in column (2), of the Table below, from the so much of the union territory tax leviable thereon under section 7 of the said Act, as in excess of the amount as specified in corresponding entry in column (4) of the aforesaid Table, namely:
| Sl. No. | Chapter, Heading, Sub-heading or Tariff item |
Description of Goods |
Rate |
| (1) | (2) | (3) | (4) |
| 1 | 2804 | Medical Grade Oxygen | 2.5% |
| 2 | 30 | Tocilizumab | Nil |
| 3 | 30 | Amphotericin B | Nil |
| 4 | 30 | Remdesvir | 2.5% |
| 5 | 30 | Heparin (anti-coagulant) | 2.5% |
| 6 | 3002 or 3822 | Covid-19 testing kits | 2.5% |
|
7 |
3002 or 3822 | Inflammatory Diagnostic (marker) kits, namely- IL6, D- Dimer, CRP (C-Reactive Protein), LDH (Lactate De- Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents. |
2.5% |
| 8 | 3804 94 | Hand Sanitizer | 2.5% |
| 9 | 6506 99 00 | Helmets for use with non-invasive ventilation | 2.5% |
| 10 | 8417 or 8514 | Gas/Electric/other furnaces for crematorium | 2.5% |
| 11 | 9018 19 or 9804 | Pulse Oximeter | 2.5% |
| 12 | 9018 | High flow nasal canula device | 2.5% |
| 13 | 9019 20 or 9804 | Oxygen Concentrator/ generator | 2.5% |
| 14 | 9018 or 9019 | Ventilators | 2.5% |
| 15 | 9019 | BiPAP Machine | 2.5% |
|
16 |
9019 |
|
2.5% |
| 17 | 9025 | Temperature check equipment | 2.5% |
| 18 | 8702 or 8703 | Ambulance | 6% |
In addition to this, a lower Goods and Services Tax (GST) of 5 per cent will be applicable for work contracts for construction, repair or maintenance of electric furnaces meant for funeral, burial or cremation of the deceased. The earlier tax rate of this service was 12 per cent.
The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, on June 12, had slashed tax rate on COVID drugs such as Remdesivir and Tocilizumab as well as on medical oxygen, oxygen concentrators and other COVID essentials, as per PTI report.
The Medical Dialogues team had reported earlier that the Council in its meeting 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 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 was slashed to nil from 5 per cent, the rate on Remdesivir and anti-coagulants like Heparin was lowered from 12 per cent to 5 per cent.
The Council also decided to cut the GST rate on ambulances to 12 per cent from 28 per cent.
Further, tax on COVID testing kits, pulse oximeters (including personal imports) has been brought down to 5 per cent from 12 per cent. Hand sanitisers, temperature check equipment, gas/electric furnaces for crematoriums too will attract a lower 5 per cent tax, from 18 per cent earlier.
To view the official gazette notification, click the link below:
