courtesy: New Indian Express
The 44th GST council meet held under the chairmanship of Union Finance Minister, Nirmala Sitharaman, has decided to reduce the GST rates on the specific items being used in COVID-19 relief and management till September 30, 2021.
“We considered that even GST on ambulances must be brought down from 28 per cent to 12 per cent,” said the Nirmala Sitharaman in the live press conference. On the recommendations made by the group of ministers (GoM) the substantial changes has been brought. She said, “There was a lot of substance in the recommendations of the GoM, and as a result the council largely agreed to go with the said recommendations.”
The GST Council have reduced the GST rates of Remedesivir used for COVID-19 treatment from 12 per cent to 5 per cent and a nil tax would be charged on Tocilzumab. Along with the that, no GST would be levied on Amphotericin B, the antifungal drug which is used for black fungus treatment. The GST on electric furnaces and temperature checking tools has been brought down to 5 per cent and on much-needed ambulances to only 12 per cent.
Justifying the GST rate on COVID-19 vaccines, she mentioned how the Central government has bought 75 per cent of the vaccine supplies and has also paid the GST in that but ‘there will be no effect on people’ in the government hospital because the vaccines are provided to them by the Government ‘for free’.
Talking about whether the states will get back a feasible amount of the money for the vaccines bought by the Centre, the finance minister said that it was not a sizeable amount, and that there was a formula for devolution. “As per the formula, everything collected is divided into 50-50, and a certain amount goes to the State. Around Rs.71 out of Rs.100 collected will go to the states, approximately,” responded Nirmala Sitharaman.
In the conference it was clearly mentioned repeatedly, that as far as people who wish to get the vaccine in government hospital are concerned, they are neither supposed to pay the GST nor the cost of the vaccine.
The Finance Minister elaborated that the ‘rate-cut’ have not been done for the cost implications on the Government but for the ease of the people. She also mentioned how it all depends on the people and their demand for vaccines. The financial consequences that might occur due to this was not the reason for the cut. The only consideration done was it’s benefits for the patients. The only reason that was responsible for the GST rate-cut, as mentioned by honourable Finance minister Nirmala Sitharaman was “for the ease the patients.”
The 44th GST Council held under the Chairmanship of FM Smt @nsitharaman has decided to reduce the GST rates on the specified items being used in COVID-19 relief and management till 30th September, 2021.
Read more➡️ https://t.co/kUU8PzaUQq
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— Ministry of Finance (@FinMinIndia) June 12, 2021
The meeting was also attended by the Union Minister of State for Finance and Corporate Affairs, Shri Anurag Thakur along with Finance Ministers of the States and Union Territories, and also the senior officers of the Ministry of Finance.
The press conference ended on the note that the implications of the reduction of the GST rates were only being made for the people of India.