The Goods and Services Tax Council has cut the tax on medicines, some hospital equipment, and other things necessary in the fight against COVID-19. The tax drop was recommended by a Group of Ministers in the aftermath of the epidemic, whose crushing impacts on the economy have also harmed household finances, according to the constitutional body that determines GST rates.
There will be no tax on medications such as Tocilizumab and Amphotericin B that are used to treat Black Fungus, an opportunistic fungal infection that plagues persons infected with Covid.
Tax reductions are in effect through September 30 and may be extended closer to the deadline. Covid vaccines continue to be subject to a 5% GST.
The GST rate on certain items that are currently levied at 18% remains unchanged, including RT-PCR machines, RNA extraction equipment, and genome sequencing devices. Genome sequencing kits that are currently being charged at a 12% rate will remain at that rate.
Additionally, there is no tax break on raw materials used in Covid testing kits.
Additionally, GST has been cut on anticoagulants such as Heparin (from 12% to 5%), Remdesivir (from 12% to 5%), and any drug prescribed by the Health Ministry for Covid therapy (from applicable current rate to 5 per cent).
The GST on the following equipment has been reduced from 12% to 5%: medical grade oxygen, oxygen concentrators and generators, including personal import, ventilators, ventilator masks, Bipap machines, and high-flow nasal canula devices.
GST will be levied at 5% on all Covid testing kits, down from 12% before. Specific inflammatory diagnostic kits, such as D-Dimer, IL-6, ferritin, and LDH, will be invoiced at a 5% surcharge as well.
Bhoi Smrutirekha Dharanidhar