The Group of Ministers (GoM) to decide on GST rates for Covid-related relief material has been formed. The decision comes a day after Finance Minister Nirmala Sitharaman-headed GST Council in its 43rd meeting on Friday decided that a GoM will decide on the issue of GST concession or exemption for Covid-related material such as vaccines, drugs and other medical equipment.
The GoM will submit its report on the matter on June 8, 2021.
The GoM consists of Meghalaya CM Conrad Sangma as Convener, Nitinbhai Patel, Deputy CM of Gujarat, Ajit Pawar, Deputy CM of Maharashtra, Mauvin Godinho, Minister of Transport, Panchayati Raj, Housing, Protocol and Legislative Affairs, Goa, Niranjan Pujari, Minister of Finance and Excise, Odisha, T Harish Rao, Minister of Finance, Telangana and Suresh Kumar Khanna, Minister of Finance, Uttar Pradesh as members.
The GoM will submit its report by June 8 on the issue of concession or exemption to Covid-related material such as vaccines, drugs and medicines, testing kits, medical-grade oxygen, oxygen concentrators, generators and ventilators, PPE kits, N95 masks, surgical masks, thermometers and other such items.
Currently, vaccines attract 5% GST and 12% rate is levied on COVID-19 drugs and oxygen concentrators for domestic supplies and commercial imports. For oxygen concentrators imported for personal use, the government reduced GST rate from 28% to 12% and waived customs duties earlier.
In the wake of a massive surge in the pandemic during April, demands for concession or complete waiver of the tax on material for Covid material were made.
FM Sitharaman after the conclusion of the 43rd meeting of the GST Council on Friday said import of COVID-related relief items, even if purchased or meant for donating to the government or to any relief agency upon recommendation of state authority, will be exempted from IGST till August 31, 2021.
Amphotericin B, which is required for treating Mucormycosis or Black Fungus infection, has also been included in the list of items exempted from IGST, in view of rising cases of the infection
