COVID Drugs, Oxygen Concentrators, Ventilators To Carry 5% Tax As GST Council Slashes Rates
In its 44th meeting, the Goods and Services Tax(GST) council slashed the tax rates of several COVID drugs and essentials used in relation to pandemic control.The tax rates on medicines like Tocilizumab and Amphotericin B, used for treating Black Fungus, have been reduced from 5% to zero.Rates of Remdesivir and any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and...
In its 44th meeting, the Goods and Services Tax(GST) council slashed the tax rates of several COVID drugs and essentials used in relation to pandemic control.
The tax rates on medicines like Tocilizumab and Amphotericin B, used for treating Black Fungus, have been reduced from 5% to zero.
Rates of Remdesivir and any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment have been slashed from 12% to 5%.
GST on ambulances has been reduced to 12% from current 28%. GST Council slashed tax rate from 12% to 5% on medical grade oxygen, BiPaP machines, oxygen concentrators, ventilators, pulse oximeter.
These rate reductions/exemptions shall remain in force upto 30th September 2021.
The meeting chaired by Union Finance Minister Nirmala Sitharaman accepted the recommendations made by the Group of Ministers on tax relief for COVID essentials.
The details of recommendations are given below :
| S. No. | Description | Present GST Rate | GST Rate recommended by GST Council |
| |||
| 1. | Tocilizumab | 5% | Nil |
| 2. | Amphotericin B | 5% | Nil |
| 3. | Anti-Coagulants like Heparin | 12% | 5% |
| 4. | Remdesivir | 12% | 5% |
| 5. | Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment | Applicable Rate
| 5% |
| |||
| 1. | Medical Grade Oxygen | 12% | 5% |
| 2. | Oxygen Concentrator/ Generator, including personal imports thereof | 12% | 5% |
| 3. | Ventilators | 12% | 5% |
| 4. | Ventilator masks / canula / helmet | 12% | 5% |
| 5. | BiPAP Machine | 12% | 5% |
| 6. | High flow nasal canula (HFNC) device | 12% | 5% |
| |||
| 1. | Covid Testing Kits | 12% | 5% |
| 2. | Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| |||
| 1. | Pulse Oximeters, incl personal imports thereof | 12% | 5% |
| 2. | Hand Sanitizer | 18% | 5% |
| 3. | Temperature check equipment | 18% | 5% |
| 4. | Gas/Electric/other furnaces for crematorium, including their installation, etc. | 18% | 5% |
| 5. | Ambulances | 28% | 12% |