The GST Council on the 12th of June 2021, conducted a virtual meeting, under the chairmanship of Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman and other States Finance Ministers. And the highlights of the same are discussed in this article.
Highlights of the 44th GST Council Meeting
The 44th GST Council Meeting took decisions regarding the reduction of GST rates on drugs that are used in the treatment of COVID-19, along with other medical supplies. It was also highlighted that such reductions or exemptions shall remain in force only up to the 30th of September 2021. It should also be noted that these revised rates shall apply only to the newly manufactured stocks.
Some of the major highlights are:
- The GST Rate on the below-mentioned items was reduced from 12% to 5%;
– ventilators,
– medical-grade oxygen,
– COVID-19 testing kits,
– oxygen concentrators, and
– BiPAP machines.
- The GST rate on anticoagulants given below has been reduced from 12% to 5%;
– heparin,
– high-flow nasal cannula (HFNC) devices, and
– pulse oximeters.
- GST Rate on hand sanitizers and temperature check equipment’s which were 18% has now been revised to 5%.
- The GST Rate on vaccines will continue to be 4.5%.
- There were product divisions proposed for setting GST Rates like:
– medicines,
– oxygen, oxygen-generation tools, testing kits,
– other materials, and
– COVID-19-related support material.
- The rate of GST on Ambulances would now be 12%. And this was taken as a part of the adoption of the recommendations made by GoMs (Group of state Ministers) Rate Rationalization.
- The Centre will be purchasing 75% of the vaccine and will also pay the GST for the same. States receive only 70% of GST revenue from the same. The chart given below highlights the GST rates that have been proposed by the 44th GST Council Meeting:
- Medicines needed for COVID-19 and Black Fungus treatment
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Tocilizumab | 5% | NIL |
| 2 | Amphotericin-B | 5% | NIL |
| 3 | Remedesivir | 12% | 5% |
| 4 | Anticoagulants such as Heparin | 12% | 5% |
| 5 | Any other drug (suggested by the Ministry of Health and Family Welfare (MoHFW) and the Dept. of Pharma (DoP) for COVID-19 treatment) | From the current applicable rate | 5% |
Medical equipment needed for COVID-19 treatment
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Medical Grade Oxygen | 12% | 5% |
| 2 | Oxygen concentrators or generators (that comprise personal imports) | 12% | 5% |
| 3 | Ventilators and ventilator masks or cannula or helmets | 12% | 5% |
| 4 | BiPaP Machine | 12% | 5% |
| 5 | High flow Nasal Cannula Device | 12% | 5% |
| 6 | Pulse Oximeters | 12% | 5% |
COVID-19 testing kits and goods used in COVID-19 preventive measures
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | COVID Testing Kits | 12% | 5% |
| 2 | Genome Sequencing Kits | 12% | 12% |
| 3 | RT-PCR Machines | 18% | 18% |
| 4 | PPE Kits | 5% | 5% |
| 5 | N95, surgical, and other triple-layer masks | 5% | 5% |
| 6 | Hand Sanitizer | 18% | 18% |
| 7 | Temperature Equipment | 18% | 12% |
Other as per the 44th GST Council Meeting
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Gas or electric or other furnaces for crematoriums, including their installation, etc. | 18% | 5% |
| 2 | Ambulances | 28% | 12% |
Presumptions from the 44th GST Council Meeting
The GoM was established on 29th May 2021, for assessing the need for lowering GST on Covid-19 necessities and also provide a report to the Ministry of Finance by the 8th of June 2021. And one of the solitary items on the agenda of the 44th meeting of the GST Council is to consider the report of GoM and decide whether or not to cut the GST Rate on the necessities for Covid-19 treatment.
As per the reports available it has been stated that the GoM has recommended to keep 5% GST Rate for vaccines for Covid-19 while suggesting or recommending the below-specified rates of GST for other items.
Medicines needed for COVID treatment
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Tocilizumab | 5% | NIL |
| 2 | Amphotericin-B | 5% | NIL |
| 3 | Remedesivir | 12% | 5% |
| 4 | Anticoagulants | 12% | 5% |
| 5 | Medical O2 | 12% | 5% |
Additionally, it was also stated that any other drug guided by the Health Ministry for Covid-19 treatment shall be decreased to a rate of 5% GST.
Medical equipment needed for COVID treatment
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Oxygen Concentrator | 12% | 5% |
| 2 | Ventilators and Ventilator Masks | 12% | 5% |
| 3 | BipAp Machine | 12% | 5% |
| 4 | HF Nasal Cannula Device | 12% | 5% |
| 5 | Pulse Oximeters | 12% | 5% |
COVID-19 testing kits and goods used in the prevention
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Covid-19 Testing Kits | 12% | 5% |
| 2 | Genome Sequencing Kits | 12% | 12% |
| 3 | RT-PCR Machines | 18% | 18% |
| 4 | PPE Kits | 5% | 5% |
| 5 | N95, surgical, and other triple-layer masks | 5% | 5% |
| 6 | Hand Sanitiser | 18% | 5% |
| 7 | Temperature Equipment | 5% | 5% |
- Other necessities
| SL. NO. | ITEMS | OLD RATE | NEW RATE PROPOSED |
| 1 | Crematorium Furnaces | 18% | 12% |
| 2 | Portable Hospital Units | 18% | 18% |
| 3 | Ambulances | 28% | 28% |
The new rates of GST or exemptions shall be in force until the month of 30th September 2021. There is a possibility of an extension for the same on the approach of such a deadline, which might be announced at the next GST Council Meeting. With the next meeting, we can also expect a lot more changes, such as the addition of exemptions and other earmark changes, which might be notified by the council as a part of the recommendations being made by the GoM and other officers.
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