No GST on Covid, Black Fungus medicines, tax on oximeters slashed

Mangalore Today News Network / News18

New Delhi, Jun 12, 2021: To provide relief to thousand of people amid the second wave of coronavirus pandemic, Union finance minister Nirmala Sitharaman on Saturday waived tax on Covid-19 essential items including medicines and equipment. The decision was taken in 44th Goods and Services Tax (GST) Council meet on June 12. The states have earlier urged the Union government to consider tax relief on COVID-19 essential items.

 

“While the reductions on medication and equipment are good welfare measures , curtailment of the exemption period would make it difficult for businesses to plan new investments and expand their supply chains in order to ensure that they reach all corners of the country. Businesses engaged in their manufacture and trading would hope that the period is extended beyond 30th September," said M S Mani, senior director, Deloitte India.

During the previous GST Council meeting, the states asked the finance minister to provide tax relief on Covid-19 essentials — PPE kits, masks, vaccines and medicines. Finance minister constituted a Group of Ministers (GoM) to examine possible waivers of GST levies essential supplies. Meghalaya chief minister Conrad Sangma has been designated as the convener of the eight-member GoM mad tasked to submit its recommendations to the council by June 8.

The GoM submitted its report on June 7. It has suggested rate cut on some COVID essentials to 5 per cent and no change in tax rate on vaccines, according to reports.

“Its is good to see that the Council is showing an urgency to decide on critical issues. Hopefully, they will balance out the concerns of revenue collections and impact on the common man and take an informed decision on the rate cuts,” said Rajat Bose, partner, Shardul Amarchand Mangaldas & Co.