GST Council cuts tax rate on medical grade oxygen from 12 per cent to 5 per cent

The rate of Covid-19 medicines such as Remdesivir and anti-coagulants like Heparin is lowered from 12 per cent to 5 per cent, while no tax will be charged on mucormycosis medicines like Tocilizumab and Amphotericin B

The GST Council on Saturday slashed the tax rate on Covid-19 medicines such as Remdesivir and equipment like oxygen concentrators and medical grade oxygen.

ADVERTISEMENT

While GST on 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.

Also read: Covid-19: NCP demands GST waiver on oxygen equipment and medicines

Tax on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been cut to 5 per cent from 12 per cent, Finance Minister Nirmala Sitharaman said.

A 5 per cent GST levy on vaccines will continue which will allow manufacturers to get benefit of settling taxes paid on inputs.

Nirmala Sitharaman explained that the 5 per cent levy will not put any additional burden on common man as the government was procuring all vaccines and giving them to citizens for free.

Also, tax on Covid testing kits has been brought down to 5 per cent from 12 per cent.

Pulse oximeters, hand sanitisers, temperature check equipment and ambulances too will attract lower 5 per cent tax, she said. 

The reduced tax rates were based on a recommendation of a group of ministers, headed by Meghalaya Deputy Chief Minister Conrad Sangma, and would remain effective till September 30, 2021.

"It was felt that the GoM's recommendations has brought in a lot of substantial change. Many items, that were at 18 per cent and 12 per cent, brought down to 5 per cent. So there was a lot of substance in the recommendation made by GoM. The Council largely agreed to go with GoM's recommendation...," Sitharaman said while briefing reporters after the 44th GST Council meeting in Delhi.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!