The 44th Goods and Services Tax (GST) Council under thechairmanship of Finance Minister Nirmala Sitharaman took cognizance of thepandemic situation in the nation and reduced GST rates on certain items beingused in relief and management of COVID till September 30, 2021.
Specifically, the GST rate on vaccines was left unchanged to5%. Tax rate on medicines for COVID including Remdesivir; medical grade oxygen,and equipment like oxygen concentrators has been slashed.
Further, GST on Tocilizumab and Amphotericin B have beenslashed from earlier rate of 5%. For Remdesivir and anti-coagulants including Heparin,the tax rate is now 5% from earlier rate of 12%.
This blanket rate of 5% includes any medicines which may beincluded in COVID treatment by the Ministry of Health and Family Welfare (MoHFW)and Department of Pharma (DoP).
The tax on breathing supplies has been reduced to 5% from12%.This category includes medical grade oxygen, oxygen concentrators,ventilators, BiPAP machines, and high flow nasal cannula (HFNC) .
COVID testing kits will now be taxed at 5% instead ofearlier 12%.
Another group of equipment to now attract a lower tax of 5%includes pulse oximeters, hand sanitisers, temperature checking equipment, andambulances.
Further, due regard has been given to last rites ritual. Anygas / electric / other furnaces for crematorium including their installationand related activities will now be taxed at 5% instead of the standard 18%.
It is worth reminding that the special rebate is applicabletill September 30, 2021.