44th GST Council Meeting: Reduction in GST Rates on Covid-19 Essentials
Hemlata Khandelwal / 2021-06-17 06:41:31About 44th GST Council Meeting;
The Finance Ministry has notified concessional rates of GST on COVID relief products till September 30, 2021. Also, a reduced 5 per cent GST will be applicable on the contract for construction, repair or maintenance of electric furnaces for the last rites of the deceased. Earlier, 12 percent GST was levied on this service.
on June 12, a decision was taken to reduce the GST rates on many products related to the treatment of Covid. The Revenue Department of the Finance Ministry on Monday notified lower rates of GST on items used in the COVID pandemic such as sanitizers, pulse oximeters, BiPAP machines, testing kits, ambulances and temperature testing equipment.
When did the government reduce the rate of GST?
The government on Saturday decided to reduce the GST rates on many products related to covid-19in the 44th council meeting of GST. It will continue to attract 5% GST as before on covid vaccine.
Decision of Central Government:
The central government has taken a huge announcement. In fact, of 44th meeting of GST Council, it has been decided that the rate of goods and service tax will be reduce on all these essential goods. "used in relief and management related to Covid-19 was done.
What decisions are taken by the Government?
In the meeting, it was decided not to levy any GST on the black fungus drug Amphotericin B. The GST Council has also reduced the tax on Remdesivir. The council has taken the decision to decrease the rate of tax. The rate of the tax (GST) on ambulances has been decreased from 28 per cent to 12 per cent.
GST rates reduces on these essential things
- Manydrugs
- Covid testing kit
- Medicaloxygen,
- Oxygen concentrator
- Ventilator
- bi-pap machines
- Ambulance and others
Also read about (43rd gst council meeting)
In addition, GST on ventilators, medical grade oxygen, COVID-19 testing kits, oxygen concentrators and BiPAP machines has been reduced to 5 per cent from the existing 12 per cent. The GST on hand sanitizers and temperature testing equipment has also been reduced to 5 per cent. GST on pulse oximeter, HFNC devices has also been reduced to 5 per cent.
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In which mode the meeting was held?
The 44th GST Council, met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing on 12th June 2021.
The GST rates reduced in the 44th GST Council Meeting are given below:
A. Medicine
1. Tocilizumab, Current GST Rate: 5%, New GST rate recommended by GST council: 0%.
2. Amphotericin B, Current GST Rate: 5%, New GST rate recommended by GST council: 0%.
3. Anti-coagulants such as heparin, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
4. Remdesivir, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
B. Oxygen, Oxygen production equipment and related medical equipment
1. Medical grade oxygen, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
2. Oxygen concentrator/, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
3. Artificial respiration, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
4. Ventilator Mask / Cannula / Helmet, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
5. Bipap Machine, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
6. High Flow Nasal Cannula (HFNC) Device, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
C. Testing Kits and Machines
1. Covid Test Kit, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
2. Namely D-dimer, IL-6, Ferritin and LDH, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
D. Other COVID-19 related relief material
1. Pulse Oximeter, including its individual imports, Current GST Rate: 12%, New GST rate recommended by GST council: 5%.
2. Hand Sanitizer, Current GST Rate: 18%, New GST rate recommended by GST council: 5%.
3. Temperature check device, Current GST Rate: 18%, New GST rate recommended by GST council: 5%.
4. Gas/electric/other furnaces for cremation, including their installation etc., Current GST Rate: 18%, New GST rate recommended by GST council: 5%.
4. Ambulances, Current GST Rate: 28%, New GST rate recommended by GST council: 12%.
In the 2nd wave of Corona, when the cases goes increase of Covid-19 sharply, In such a situation, the decision of the Council has been taken in view of this problem.
There was a long standing demand from different and many states and different types of stakeholders in the sector of health to decrease the GST rates on these necessary products/goods. "In this situation, below the 44th council meeting of GST, the decision on the rate of goods and service tax will be decreased on all these essential goods."