Can we expect tax reduction on COVID vaccines, drugs and medical equipment?

Can we expect tax reduction on COVID vaccines, drugs and medical equipment?

The GST Council could not reach a consensus on the issue of GST reduction on Covid drugs, vaccines, and medical devices. The 43rd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman ended on Friday without any decision being taken.

Sitharaman said the issue of tax being imposed on vaccines, drugs, and equipment related to Covid-19 treatment was discussed at length during the council meeting. She spoke to the media after the end of the GST Council.

It was revealed that a ministerial sub-committee is being set up on the issue of GST reduction on related items. The subcommittee said it would report in 10 days. The report will be submitted within the 8th of June. The members of the subcommittee have not yet been finalized.

FM Nirmala said it was decided to continue the GST exemption on donated medical equipment. She added that the exemption on medical equipment coming to the government or agencies would continue till August 31 this year.

The Center says the GST paid on vaccines and other medical devices purchased by the states will be refunded. FM Sitharaman said that she proposed to amend the C-GST Act to enable self-certification.

The list of exceptions includes the drug amphotericin-B, which is used to treat black fungus. Nirmala Sitharaman revealed that Japan and the UAE have partnered for the production of vaccines. The GST meeting took place for the first time after a gap of almost seven months.