New Delhi: Union Finance Minister Nirmala Sitharaman has said that the removal of Goods and Services Tax (GST) on covid vaccine, medicines and oxygen concentraters will make these life saving medicines and goods costlier for consumers. Explaining the reason for this, she said that with the withdrawal of GST, their manufacturers will not be able to get the benefit of input tax credit for tax paid on raw/intermediate goods and materials used in production.

Domestic supply of vaccine and commercial import stake GST at the rate of five per cent. Corona drugs and oxygen concentraters are GST at the rate of 12 per cent. Replying in a tweet demanding exemption from GST on these items, Union Minister Sitaraman wrote, "If a full five per cent discount is given on vaccine, vaccine manufacturers will not get the benefit of input tax credit for tax paid on raw materials and that entire cost will be paid to customers , they will collect it from the citizen".

Sitharaman said that 'Charging GST at the rate of 5 per cent gives manufacturers the benefit of input tax credit (ITC) and can claim refunds if ITC is high. Therefore, exempting vaccine manufacturers from GST will hurt the customers'. 

IPO: Fincare Small Finance Bank files DRHP with market regulator SEBI

Former DGP of Andhra Pradesh Dr B Prasada Rao took his last breath in USA

Gurugram administration approves delivery of oxygen through Amazon and Zomato