The 44th GST Council Meeting reduced GST rates on essential COVID-19 supplies. These temporary cuts apply until September 30, 2021.
The 44th Goods and Services Tax (GST) Council convened on June 12, 2021. Following this gathering, Finance Minister Smt. Nirmala Sitaraman revealed plans to establish a Group of Ministers (GoM). This group would assess potential further tax reductions and new exemptions for items crucial to COVID-19 management and the treatment of Black Fungus. The Union Finance Minister presided over the 44th GST Council meeting. Key attendees included Shri Anurag Thakur, Union Minister of State for Finance and Corporate Affairs, along with finance ministers from various states and Union Territories, and other senior officials from both the Ministry of Finance and the respective state and UT administrations.
Recent Updates on GST Council Meetings
- June 24, 2022: The 47th GST Council meeting occurred on June 28 and 29, 2022, in Chandigarh. Chaired by Union Finance Minister Nirmala Sitharaman, this meeting included proposals to adjust rates for increased revenue and to address inversion issues, simultaneously streamlining the GST exemption list. Additionally, relief for compliance was extended to e-commerce providers and taxpayers under the composition scheme.
- December 29, 2021: The 46th GST Council meeting was held in New Delhi on December 31, 2021. During this session, led by Union Finance Minister Nirmala Sitharaman, a decision was made to postpone the increase of the GST rate for textiles to 12%.
- September 1, 2021: The 45th GST Council meeting convened on September 17, 2021. Key items on the agenda included extending tax concessions for COVID-19 essential goods, discussing GST compensation for states, and correcting the inverted tax structure.
- May 28, 2021: The 43rd GST Council meeting took place on May 28, 2021. The Council endorsed the reintroduction of the GST amnesty scheme, streamlined late fees for all taxpayers (especially smaller ones), and exempted IGST on imported COVID-19 treatment equipment and relief supplies until August 31, 2021.
Key Outcomes of the 44th GST Council Meeting
The 44th GST Council decided to decrease the GST rates on various medications and medical provisions essential for COVID-19 treatment. These revised rates or exemptions were applicable until September 30, 2021, and specifically applied to newly produced stock. The following tables detail the newly implemented GST rates:
Medicines required for COVID-19 and Black Fungus treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants like Heparin | 12% | 5% |
| Any other drug (recommended by the Ministry of Health and Family Welfare (MoHFW) and the Dept. of Pharma (DoP) for COVID-19 treatment) | Existing rate | 5% |
Medical equipment required for COVID-19 treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Medical Grade Oxygen | 12% | 5% |
| Oxygen concentrators/ generators (which include personal imports) | 12% | 5% |
| Ventilators and ventilator masks/ cannula/ helmets | 12% | 5% |
| BiPaP machine | 12% | 5% |
| High flow nasal cannula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID-19 testing kits and items utilised for the prevention of COVID-19
| Items | Old rate | Proposed rate |
|---|---|---|
| COVID-19 testing kits | 12% | 5% |
| Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| Hand sanitiser | 18% | 5% |
| Temperature checking equipment | 18% | 5% |
Others:
| Items | Old rate | Proposed rate |
|---|---|---|
| Gas/electric/other furnaces for crematoriums, including their installation, etc | 18% | 5% |
| Ambulances | 28% | 12% |
Anticipations Prior to the 44th GST Council Meeting
A Group of Ministers (GoM) was established on May 29, 2021, tasked with evaluating the necessity of lowering GST on essential COVID-19 items. The GoM submitted its findings to the Finance Ministry by June 8, 2021. The primary focus of the 44th GST Council meeting was to deliberate on this GoM report and determine if GST rates on COVID-19 essentials should be decreased. Reports indicated that the GoM suggested maintaining the current 5% GST on COVID-19 vaccines and put forward the subsequent new GST rates for other vital COVID-19 supplies:
Medicines required for COVID treatment:
| Items | Current rate | Proposed rate |
|---|---|---|
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants | 12% | 5% |
| Medical O2 | 12% | 5% |
Also, any other drug prescribed by the Health Ministry for COVID treatment shall be reduced to a 5% GST rate.
Medical equipment required for COVID treatment:
| Items | Current rate | Proposed rate |
|---|---|---|
| Oxygen concentrator | 12% | 5% |
| Ventilators and ventilator masks | 12% | 5% |
| BipAp machine | 12% | 5% |
| HF nasal canula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID testing kits and items utilised for prevention of COVID-19:
| Items | Current rate | Proposed rate |
|---|---|---|
| COVID testing kits | 12% | 5% |
| Genome sequencing kits | 12% | No change |
| RT-PCR machines | 18% | No change |
| PPE kits | 5% | No change |
| N95, surgical and other triple-layer masks | 5% | No change |
| Hand sanitiser | 18% | 5% |
| Temperature equipment | 18% | 12% |
Other necessities:
| Items | Current rate | Proposed rate |
|---|---|---|
| Crematorium furnaces | 18% | 12% |
| Portable hospital units | 18% | No change |
| Ambulances | 28% | No change |
The current and expected GST exemptions and rate reductions were anticipated to be valid until August 31, 2021.
