FinMin Eases GST Load on Covid-related Materials, Services

The finance ministry has notified concessional rate of GST for Covid relief materials till September 30.

A lower Goods and Services Tax of 5 per cent will be applicable to work contracts for construction, repair or maintenance of electric furnaces meant for funeral, burial or cremation, it said. The tax rate for this service was 12 per cent earlier.

The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, had on June 12 slashed the tax rate on Covid drugs such as Remdesivir and Tocilizumab as well as on medical oxygen, oxygen concentrators and other Covid essentials.

The revenue department under the finance ministry on June 14 notified the lower rates for 18 Covid-related supplies like hand sanitiser, pulse oximeter, BiPAP machine, testing kit, ambulance and temperature check equipment.

These concessional rates would be applicable till September 30, it added.

The Council had in its June 12 meeting decided to reduce GST on Covid-19 drug Tocilizumab and black fungus medicine Amphotericin B to nil from 5 per cent. The rate on Remdesivir and anticoagulants like Heparin is lowered from 12 per cent to 5 per cent.

The Council also decided to cut the GST rate on ambulance to 12 per cent from 28 per cent.

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 per cent from 12 per cent.

Also, tax on Covid testing kits, pulse oximeters, including personal imports, has been brought down to 5 per cent from 12 per cent. Hand sanitisers, temperature check equipment, gas/electric furnaces for crematoriums too will attract a lower 5 per cent tax, from 18 per cent earlier.