In the midst of the corona epidemic in the country, the rate at which GST should be charged on relief materials related to corona such as medical oxygen, oxygen concentrator, oxygen cylinder, mask and medicine of black fungus, has been decided in the meeting of the GST Council today. Let us tell you, after the 44th meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman, it has been decided to retain the 5 percent GST rate on the corona vaccine.
Let us inform that, in the press conference after the meeting, the Finance Minister has said that the GST Council has approved the tax free drug of black fungus. Also, the GST Council has approved the proposal to reduce the GST on Remdesivir drug from 12 per cent to 5 per cent. Apart from this, the rate of GST on oximeters, medical grade oxygen and ventilators has also been reduced from 12 percent to 5 percent.
According to sources, Finance Minister Nirmala Sitharaman said that the central government is procuring 75 percent of the vaccine and is also paying GST on it. However, the 75 percent vaccine that is being provided to the people free of cost in government hospitals will not have any impact on the public. He also said that the GST on electric furnaces and temperature checking equipment has also been reduced to 5 per cent and on ambulances to 12 per cent. But these rates will be valid only till September.
In the last meeting held on 28 May, it was decided to constitute a Group of Ministers to provide tax relief on essential items related to Kovid including PPE kits, masks, and vaccines. It may be noted that the GoM had submitted its report on June 7.