Union Finance Minister Nirmala Sitharaman said on Saturday that recommendations of Group of Ministers (GoM) set up to look into tax relief on Covid-19 medical supplies have been accepted by the GST Council.
The Goods and Services Tax (GST) rate has been reduced from 12 per cent earlier to 5 per cent now on Covid testing kits, medical grade oxygen and ventilators.
For ambulances, the GST rate has been reduced from 28 per cent to 12 per cent and for hand sanitsers from 18 per cent to 5 per cent. These rates will be valid till September 30.
Temperature check equipment will now attract 5 per cent GST, earlier it was 18 per cent. The GST rate on pulse oximeters, including personal imports, has been reduced to 5 per cent from earlier 12 per cent.
The GST rates on specified inflammatory diagnostic kits has dropped to 5 per cent from 12 per cent and rates on gas/electric/other furnaces for crematorium including their installation has been cut to 5 per cent from 18 per cent earlier.
The GST Council has decided not to impose any GST on Covid-19 related drugs — Tocilizumab and Amphotericin B. Earlier the rate was 5 per cent.
Rates on anti-coagulants like Heparin and Remdesivir have been reduced to 5 per cent from 12 per cent. Any other drug recommended by the Ministry of Health and Family Welfare (MoHFW) and the Department of Pharma (DoP) for Covid treatment will now attract 5 per cent tax.