GST Council Cuts Tax On Covid-19 Medicines and Equipment
New Delhi: The 44th Goods and Services Tax (GST) Council chaired by Finance Minister Nirmala Sitharaman on Saturday reduced the tax rate on Covid-19 drugs, medical oxygen and oxygen concentrators.
The council has also reduced the rates on Amphotericin B, medicine used for black fungus and brought it to nil level exempting 5 per cent rate.
The tax rate on Tocilizumab, used for treatment of Covid-19 has also been waived off. The previous tax rate was 5 per cent.
The GST rates of hand sanitiser, pulse oximeter, BiPAP machine, testing kit, ambulance and temperature check equipment among other 18 items have been lowered.
However, the GST rate on Covid vaccines has been retained at 5 percent as majority of the vaccines are procured by the Centre and given free to people. “Central government is purchasing 75 percent and is paying GST also. But the impact of this GST on people will be nil since people would be getting vaccines free of cost at government hospitals. Centre is purchasing and it is given free to people,” Sitharaman said.