Finance Minister Nirmala Sitharaman on Friday announced that the GST Council has decided to increase the concessional rates on drugs utilized in COVID-19 treatment till December 31, 2020. The previous deadline was September 30.
On June 12, the GST Council, chaired by Ms Sitharaman had reduced the tax rates on most of the COVID-19 medicines and equipment and announced that no tax are going to be levied on the medicines for treating Black Fungus.
The Revenue Department of the Finance Ministry had said that the GST rates are lowered for 18 Covid-related supplies and concessional rates.
The tax cut was supported recommendations by a bunch of Ministers amid the pandemic, whose crippling effects on the economy has also hurt household finance, the GST Council – a constitutional body that decides rates for the GST – had said.
The Council had decided that no tax are going to be levied on medicines just like the antibody Tocilizumab and Amphotericin B, used for treating Black Fungus, a fungal disease that affects people infected with Covid.B. Earlier, the GST rates on these medicines stood at 5 per cent.
The Council had also cut rates on anti-coagulants like heparin and Remdesivir – a drug for treating COVID-19, from 12 per cent to five per cent.
Additionally, tax rates on gas, electric, other furnaces for the crematorium, including their installation were reduced from 18 per cent to five per cent.
The GST rates on ambulances were reduced from 28 per cent to 12 per cent. The tax rates readily available sanitiser was lowered from 18 per cent to five per cent, while rates on temperature check equipment was reduced from 18 per cent to five per cent.
Covid vaccines, however, still be charged a GST of 5 per cent. there have been also no tax cuts on stuff for Covid testing kits.
There were no changes within the GST rate of some items being charged at 18 per cent, like RT-PCR machines, RNA extraction machines and genome sequencing machines. Genome sequencing kits that are being charged at 12 per cent will continued to be charged at the identical rate.
