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India’s tax council to decide on rate cut for Covid essentials on June 12

India’s tax council to decide on rate cut for Covid essentials on June 12

INDIA’S Goods and Services Tax (GST) Council will meet on June 12 to decide on rate cut for Covid essentials and black fungus medicine, according to officials.

The meeting will be chaired by finance minister Nirmala Sitharaman.


In the previous meeting, held on May 28, the council had formed a Group of Ministers (GoM) to recommend tax relief on Covid essentials, including PPE kits, masks and vaccines.

The GoM submitted its report to the council on June 7.

The GoM was mandated to examine whether a rate cut or exemption is required for Covid relief items like medical-grade oxygen, pulse oximeters, hand sanitizers, oxygen therapy equipment, PPE kits, N-95 and surgical masks.

The panel also looked into testing kits, vaccines, drugs, and medicines for Covid treatment.

GST Council that has state ministers as members, is the governing body for the implementation of GST rules in India.

On May 28, the council exempted GST on import of Amphotericin B – a medicine used for treatment of black fungus.

Currently, 5 per cent GST is levied on domestically manufactured vaccines, while it is 12 per cent for Covid drugs and oxygen concentrators.

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Officials said the full impact of these tax reductions on state revenues will become clear in the coming month, as GST is collected with a time lag. (Representational image: iStock)

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