Finance Minister Nirmala Sitharamon Friday led the 43rd Goods and Services Tax (GST) meeting in which sheannounced the GST exemption on import of Covid-related equipment received asrelief till August 31st.
This move, however, will scale upthe availability of critical equipment required in the treatment of Covid-19.
The decision came after severalstates had several states suggested FM Sitharaman cut off the GST formedical oxygen, oxygen concentrators, pulse oximeters, and Covid testing kits.
In the meeting, the council alsodecided to include medicines used in the treatment of black fungus aka Mucormycosisin the list of exempted items.
Furthermore, the FM stated thatdecision on GST cut on vaccines and other Covid-care items will be taken byJune 8 after a group of ministers will submit a report.
Apart from this, Sitharaman hasannounced an amnesty scheme for small GST taxpayers that will enable them tofile returns with reduced late fee. In the meeting, it was also decided thatthe Centre will borrow Rs 1.58 lakh crore to compensate states for loss ofrevenue from GST.
"TheGST Council will hold special a session to discuss extending payingcompensation to states beyond 2022," she said after the meet.
It may be noted here, in the 43rdGST Council Meet headed by Union Finance Ministry Nirmala Sitharaman, states’ representatives and Union territories met for the first time on Friday in nearlyeight months.
Ahead of the meeting, financeministers of opposition ruling party states decided to appeal to the governmentto reduce the tax rate on Covid-19 essentials.
Earlier this month, FM Sitharamanhad ruled out the exemption of GST on Covid vaccines, medicines, and oxygenconcentrators stating that such move would make levy burden on consumers to buylifesaving items as manufacturers will not be able to offset the taxes paid oninputs.
Currently, 5 per cent GST isreceived from domestic supplies and commercial imports of vaccines while Coviddrugs and oxygen concentrators attract a 12 per cent GST.