Addressing the media after chairing the forty fourth GST Council meet, finance minister Nirmala Sitharaman stated that the Council determined to go forward with the suggestions made by the Group of Ministers (GoM) of their report.
“It was felt that the GoM’s recommendations have brought substantial change. GST Council largely agreed to go with the recommendations, except for some slight tweaking,” Sitharaman stated.
All these revised rates shall be legitimate until September 30 as towards August-end, she added.
The assembly was attended by minister of state (MoS) for finance Anurag Thakur, finance ministers of states and Union territories and senior officers from the federal government and states.
Here are the key choices taken by the Council:
* In all, the GST Council has revised tax rates on 4 objects — medicines; oxygen and oxygen technology gear; testing kits and associated machines and different Covid reduction materials.
* GST on Tocilizumab and black fungus drug Amphotericin B has been slashed to nil from 5 per cent earlier.
* Tax on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and excessive stream nasal cannula (HFNC) gadgets has been reduce to five per cent from 12 per cent.
* Tax on Covid testing kits has been introduced down to five per cent from 12 per cent.
* Pulse oximeters, hand sanitisers and temperature test gear too will appeal to decrease 5 per cent tax.
* GST on electrical furnaces and temperature checking gear introduced down to five per cent and on ambulances to 12 per cent.
* The GST Council determined to retain 5 per cent GST on Covid vaccines.
* Centre will purchase the 75 per cent vaccine as introduced and pays GST on it too. But 70 per cent of earnings from GST shall be shared with states, Sitharaman stated.
* Sitharaman stated that when Centre is buying and paying GST too on Covid-19 vaccines and they’re being given free of value to the general public, the GST fee will make no distinction or affect on the folks.
* For ambulances, the GST fee has been reduced from 28 per cent to 12 per cent and for hand sanitsers from 18 per cent to five per cent.
* Genome sequencing kits will proceed to be charged at 12 per cent.
* Specified inflammatory diagnostic kits like D-Dimer, IL-6, Ferritin, LDH may also be charged at 5 per cent.
* The deadline of September 30 could also be prolonged based mostly on recommendation and states’ inputs and the suggestions of the GST implementation committee after eliciting opinions.
Watch GST council reduces rates on several Covid-related essential items; 5% tax on vaccines to stay