Change in GST Rates on goods being used in Covid-19 relief and management as per recommendations of 44th GST Council Meeting dated 12.06.2021

The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today dated 12.06.2021. 

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.

The meeting was also attended by 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 details of recommendations are given below :

S. No.	Description	Present GST Rate	GST Rate recommended by GST Council
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%
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%
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%
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 30^th September 2021.

Key Points -

1) While GST on Tocilizumab and Amphotericin B is slashed to nil from 5 per cent, the rate on Remdesivir and anti-coagulants like Heparin has been lowered from 12 per cent to 5 per cent.

 2)The Centre will buy the 75 per cent vaccine as announced and will pay its GST too. But 70 per cent of income from GST will be shared with States: Sitharaman

 3)Revised GST rates on oxygen, Covid drugs and related medical devices

However, GST rate on Covid vaccines has been retained at 5 per cent.

 4)A group of ministers was constituted to give relief in GST on essential items related to Kovid-19 including masks, PPE kits, testing kits, ventilators and vaccines. The Group of Ministers (GOM) submitted its report on 7 June.

5) No change in rate for COVID-19 vaccines

6) GST on ambulance brought down to 12%

7) GST on ventillators, medical oxygen, COVID testing kits slashed to 5%

 Conclusion

 The GST Council has reduced the GST on Remdesivir from 12 percent to 5 percent. The GST on medical grade oxygen, oxygen concentrator, oxygen generator has been reduced from 12 per cent to 5 per cent. The GST Council has also reduced the GST on ventilators, ventilator masks, Kovid testing kits, pulse oximeters from 12 percent to 5 percent. At the same time, the GST on hand sanitizer has been reduced from 18 percent to 5 percent and the GST on temperature check equipment has been reduced from 18 percent to 12 percent.

 

 

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