FM Cuts GST On Essential Medicines And Oximeter ForCovid-19 Treatment

The Indian Union Finance Minister Ms. Nirmala Sithraman, has waived off tax on Covid-19 essential items including medicines, equipment and hand sanitizers. 

A decision rather late in the day while the country has been grappling with the second corona wave, it is a welcome one though. Decided over in the 44th Goods and Services Tax (GST) Council meet on June 12, it is going to save a lot of money for needy Indians. The states have earlier urged the Union government to consider tax relief on COVID-19 essentials.

This step means that oximeters, black fungus and Covid-19 medication can now be bought without paying GST. Tocilizumab and Amphotericin B will not attract any GST while tax on Remdesivir has been cut to 5 percent. Anti-coagulants like Heparin will also come under 5% GST tax bracket. There will 5 per cent GST on any other drug recommended by ministry of health and family welfare (MoHFW) and deptartment of Pharma (DoP) for Covid treatment.

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GST on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been cut to 5 per cent too. Tax on Covid testing kits has been brought down to 5 per cent from 12 per cent. Industry analysts say that while the reductions on medication and equipment are a good welfare measure, curtailment of the exemption period might hamper future investments for companies.

It will also affect the 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.

The decision to curtail the GST comes after a GoM (Group of Ministers) constituted by the finance minister examined possible waivers of GST levies essential supplies. Meghalaya chief minister Conrad Sangma was been designated as the convener of the eight-member GoM had tasked to submit its recommendations to the council by June 8.