Central Government Cuts GST On COVID Treatment Drugs But Tax On Vaccine Retained

Delhi, 12th June 2021: Many big decisions have been taken in the 44th meeting of the GST Council today. These decisions will directly affect the common man.

Today the GST Council has cut the tax rate on drugs used in the treatment of Coronavirus disease (COVID19) such as Remdesivir, oxygen concentrator and medical grade oxygen. However, the tax rate on the COVID-19 vaccine has been retained at five per cent. The Council has decided to abolish the tax on Tocilizumab and Amphotericin. At present they were taxed at five per cent.

The GST rate on Remdesivir and Heparin has been reduced from 12 to 5 per cent. Finance Minister Nirmala Sitharaman said that the tax rate on medical grade oxygen, oxygen concentrators, ventilators, BIPAP machines and HFNC equipment has also been reduced from 12 to 5 per cent.

Now five per cent tax will have to be paid on the Covid test kit. Till now 11 per cent tax was being charged. The tax rate on pulse oximeters, hand sanitisers, temperature testing devices and ambulances has also been reduced to five per cent. These changes will be applicable till 30 September.

In today’s meeting, along with Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur, Finance Ministers of Union Territories and States were also present. In the meeting of the GST Council held on 28 May, a proposal was made to make essential goods related to the treatment of Covid-19 tax-free.