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COVID Drugs, Oxygen Concentrators, Ventilators To Carry 5% Tax As GST Council Slashes Rates

LIVELAW NEWS NETWORK
12 Jun 2021 10:44 AM GMT
COVID Drugs, Oxygen Concentrators, Ventilators To Carry 5% Tax As GST Council Slashes Rates
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In its 44th meeting, the Goods and Services Tax(GST) council slashed the tax rates of several COVID drugs and essentials used in relation to pandemic control.The tax rates on medicines like Tocilizumab and Amphotericin B, used for treating Black Fungus, have been reduced from 5% to zero.Rates of Remdesivir and any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and...

In its 44th meeting, the Goods and Services Tax(GST) council slashed the tax rates of several COVID drugs and essentials used in relation to pandemic control.

The tax rates on medicines like Tocilizumab and Amphotericin B, used for treating Black Fungus, have been reduced from 5% to zero.

Rates of Remdesivir and any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment have been slashed from 12% to 5%.

GST on ambulances has been reduced to 12% from current 28%. GST Council slashed tax rate from 12% to 5% on medical grade oxygen, BiPaP machines, oxygen concentrators, ventilators, pulse oximeter.

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

The meeting chaired by Union Finance Minister Nirmala Sitharaman accepted the recommendations made by the Group of Ministers on tax relief for COVID essentials.


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%



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