Finance Ministry notifies concessional GST rate on COVID-related services
Finance Ministry notifies concessional GST rate on COVID-related services
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The Ministry of Finance has notified the concessional rate of GST that will be applicable on COVID relief materials till September 30, 2021.

In addition, a lower GST of 5 percent will be applicable for work contracts for construction, repair or maintenance of electric furnaces meant for funeral, burial or cremation of the deceased. The earlier tax rate of this service was 12 percent.

The GST Council, chaired by FM Nirmala Sitharaman and comprising state ministers, on June 12, had cut tax rate on COVID drugs like Remdesivir and Tocilizumab as well as on medical oxygen, oxygen concentrators and other COVID essentials. Also, the Finance Ministry's Revenue Department on June 14, notified the lower rates for 18 COVID-related supplies, like hand sanitiser, pulse oximeters, BiPAP machine, testing kits, ambulances and temperature check equipment. These concessional rates would be applicable till September 30, 2021, it added.

The Council in its June 12 meeting had decided to reduce GST on COVID-19 drug Tocilizumab and black fungus medicine Amphotericin B to 'nil', from 5 percent. The rate on Remdesivir and Anticoagulants like Heparin is lowered from 12 percent to 5 percent. The Council also decided to cut the GST rate on ambulances to 12 percent from 28 percent.

Tax on medical-grade oxygen, oxygen concentrators (including personal imports), ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been reduced to 5 percent from 12 percent.

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