Home General 44th GST Council Meeting Highlights
44th GST Council Meeting Highlights

44th GST Council Meeting Highlights

9
0

44th GST Council Meeting Highlights – Held on 12.06.2021

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. And 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:

  1. 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.

  1. The GST rate on anticoagulants given below has been reduced from 12% to 5%;

– heparin,
– high-flow nasal cannula (HFNC) devices, and
– pulse oximeters.

  1. GST Rate on hand sanitizers and temperature check equipment’s which were 18% has now been revised to 5%.
  2. The GST Rate on vaccines will continue to be 4.5%.
  3. There were product divisions proposed for setting GST Rates like:

– medicines,
– oxygen, oxygen-generation tools, testing kits,
– other materials, and
– COVID19-related support material.

  1. 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.
  2. Centre will be purchasing 75% of the vaccine and will also pay the GST for the same. States receiving 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:
  3. 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%

 

  1. 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. And there is a possibility of extension for the same on the approach of such deadline and which might be announced in the next GST Council Meeting. And with the next meeting, we can also expect a lot more changes, the addition of exemptions and such other earmark changes which might be notified by the council as a part of the recommendations being made by the GoM and such other officers.
 
 
 
 

(9)

LEAVE YOUR COMMENT

Your email address will not be published.

Please fill this form and we'll get back to you as soon as possible!


 

Easy Payment Options Available
No Spam. No Sharing. 100% Confidentiality