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Key Highlights of 44th GST Council Meeting

The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 12th day of June 2021, Saturday, via video conferencing in New Delhi.

Union minister of state (MoS) for finance Anurag Thakur and finance ministers of states and Union territories (UTs)  attended the virtual meeting, which was held to finalize modalities to compensate states for their revenue shortfall of Rs 2.35 lakh crore in the current financial year.

Proposal at this meeting: To reduce the GST rates on the specified items being used in Covid-19 relief and management like hand sanitizers, face masks, gloves, PPE Kits, temperature scanners, and others and to take a decision on relief in respect of COVID-19 related individual items based on the report of Group of Ministers.

Previous Meeting (43rd GST Council Meeting): It held on the 29th day of May 2021, where the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM) and took several decision to help the industries affected by Covid-19. The Council had also decided in the previous meeting to reduce the compliance burden of small taxpayers and medium-sized taxpayers and recommended an amnesty scheme for reducing late fee payable, to provide relief to small taxpayers.

Recommended Read: 9 Key highlights of 43rd GST Council meeting

44th GST COUNCIL MEETING KEY HIGHLIGHTS

1. The tax rate on ventilators, medical-grade oxygen, COVID-19 testing kits, oxygen concentrators, and BiPAP machines has been brought down to 5 percent from 12 percent at present.

2. The GST on anti-coagulants like Heparin, high flow nasal cannula (HFNC) device, and pulse oximeters have been reduced to 5 percent from 12 percent at present.

3. The GST on hand sanitizers and temperature check equipment has been reduced to five percent from 18 percent at present.

4. 5% GST on vaccines will stay.

5. “GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material.

6. GST Council approved all recommendations of GoM on rate rationalization.GST on ambulances reduced to 12 percent.

7. The Centre will buy the 75 percent vaccine as announced and will pay its GST too. But 70 percent of income from GST will be shared with States.

 The details of recommendations on GST Rates are given below :

S. No. Description Present GST Rate GST Rate recommended by GST Council
A. Medicines
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 the Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment Applicable Rate 

 

5%
B. Oxygen, Oxygen generation equipment, and related medical devices
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 cannula (HFNC) device 12% 5%
C. Testing Kits and Machines
1. Covid Testing Kits 12% 5%
2. Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH 12% 5%
D. Other Covid-19 related relief material
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 the crematorium, including their installation, etc. 18% 5%
5. Ambulances 28% 12%

Validity of these revised rates:

The new rates will remain in effect till September 30, 2021, and can be extended further upon nearing the deadline.


Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error, or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information. In no event, the authors shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information.

TaxClue Team

Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at [email protected]

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