The 44th GST Council meeting was held in New Delhi on 12 June 2021, by video conference call under the chairmanship of SMT Nirmala Sitharaman, Minister of Finance and Corporate Affairs. The virtual meeting took place in order to finalize mechanisms for compensating States for the income deficit of their 2.35 lakh crore Rs in the current financial year.
Furthermore, The 43rd GST Council meeting majorly focused on providing COVID-19 relief to the taxpayers and patients suffering from the dreadful coronavirus pandemic. It was attended by Anurag Thakur, the State Minister for Finance (MOS), and by the State and Union Territory Finance Ministers. In this article, we will read about the GST Tax Rate reduced on COVID-related medicines and equipment.
Reduction of IGST on COVID-19 Related Goods
Several Covid-19 related goods, such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic marker test kits and vaccinations, were recommended in full by the GST Council for exemption from IGST. The IGST Exemption is valid even if imported on the basis of payment to government donations or a recommendation from a State agency to any relief agency.
Important Note: The waiver is valid until 31 August this year.
GST Tax Rate reduced on COVID-related medicines and equipment
The following tables properly explain the GST Tax Rate reduced on COVID-related medicines and equipment.
Revised GST rates on Covid-19 Medicines
| Medicine Name | Present GST Rate | Revised GST Rate |
| Any other drug
recommended by the Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment |
Applicable Rate | 5% |
| Amphotericin B | 5% | Nil |
| Anti-Coagulants like Heparin | 12% | 5% |
| Remdesivir | 12% | 5% |
| Tocilizumab | 5% | Nil |
Revised GST Rate on Oxygen, Oxygen generation equipment and related
medical devices
| Equipment
Name |
Present GST Rate | Revised GST Rate |
| Medical Grade Oxygen | 12% | 5% |
| Oxygen Concentrator/ Generator, including personal imports thereof | 12% | 5% |
| Ventilators | 12% | 5% |
| Ventilator masks / canula / helmet | 12% | 5% |
| BiPAP Machine | 12% | 5% |
| High flow nasal cannula (HFNC) device | 12% | 5% |
Revised GST Rates on Testing Kits and Machines
| Item Name | Current GST Rate | Reduced GST Rate |
| Covid Testing Kits | 12% | 5% |
| Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH | 12% | 5% |
Revised GST Rates on Other Covid-19 related relief materials
| Item Name | Current Rate of GST | Revised Rate of GST |
| Pulse Oximeters, incl personal imports thereof | 12% | 5% |
| Hand Sanitizer | 18% | 5% |
| Temperature check equipment | 18% | 5% |
| Gas/Electric/other furnaces for the crematorium, including their installation, etc. | 18% | 5% |
| Ambulances | 28% | 12% |
Important Note: The revised pricing will stay in force until 30 September 2021 and can be extended as per the government’s later decisions.
No tax on Black Fungus medicine: 44th GST Council meet
Another significant relief for Taxpayers and patients with Amnesty Scheme is No tax on Black Fungus medicine.
Finance minister Nirmala Sitharaman after the GST 44th Council meeting announced that mucormycosis medicine Amphotericin B would not be charged any tax.
Furthermore, to diagnose the infection adequately, the government has offered at least 170,000 vials of Amphotericin B to all states and territories of the Union on Saturday.
If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.
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