GST council on Covid Vaccine

In this article, you will learn about the GST Council and the current tax rate on vaccines, and much more.

New Updates -

1. The 43rd GST Council meeting was held on 28th May, where the Council decided to exempt some Covid-19 relief material from IGST till the end of August.

2. Finance Minister Nirmala Sitharaman said that a Group of Ministers (GOM) would be formed which would discuss and decide on the matter of taxation on Covid-19 related material and the GOM would submit a report by 8 June.

3. CNBC TV18 reported that the GST Council would meet again in a few days. The GST Council will then consider taxes on Covid treatment-related materials.

What is the GST Council?

The council is a constitutional body to make recommendations to the central and state government on issues related to the Goods and Services Tax. The Union Finance Minister presides over the GST Council and the other members are the Union Revenue or Finance Minister and the Minister in charge of Finance or Taxation of all states.

The current tax rate on vaccine/Drugs/Oxygen

Currently, a 5% goods and services tax is levied on supply and commercial imports of vaccines, and a 12% goods and services tax on Covid-19 drugs and oxygen concentrations. For imported oxygen concentrators for personal use, the government has reduced the GST rate from 28% to 12% and waived the customs duty.

Demand for Corona related goods to be exempted from GST

In many states, there has been a demand for the release of GST on the goods and vaccines related to the treatment of corona.

Strong possibility of reducing GST

There is a strong possibility of reducing GST on essential medical products related to Covid. Opposition-ruled states can push for this. -

1. GST can be reduced for a limited period only on Medical Grade Oxygen, Oxygen Concentrator, Pulse Oximeter, Covid Testing Kit, etc.

2. There is little possibility of reducing GST on Covid medicines, PPE kits, N N95 masks, hand sanitizers, thermometers, etc.

How to go around GST on Vaccines?

Saket Patwari said, “Concessional GST rate of 1% may be levied for Covid-19 vaccines. Suppliers will be allowed GST credit benefit, which can be claimed as refund under “Inverted Fee Structure Refund' Is, usually claimed by pharmaceutical companies"

Disclaimer: This article is intended for general consumption only. The information in the article was accurate at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.

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