GST Council Takes a Call to Exempt Covid-Relevant Drugs from New ChargesMonday September 20, 2021 at 10:57 am
Recently, the GST Council hosted its 45th meeting in Lucknow, where the Finance Minister, Nirmala Sitharaman, interacted with the media. She affirmed the decision on extension of decreased rates on COVID-related medicine until December 31. Besides, the GST rate for biodiesel supplied at the oil marketing companies for a diesel blend is also subject to deduction. There is a big dip announced on its rate from 12% to 5%.
Last Friday, GST Council clarified the extension of the discounted rate in lieu of the Covid related drugs till the end of 2021. Goods and Service Tax Concession can help needy buyers save some bucks on medicines to fight against the dreadful virus.
Biodiesel also Witnesses a Mega Drop from 12% to 5%
Lucknow was the venue for the 45th Annual GST Council, where Nirmala Sitharaman, the Finance Minister of India, emphasized the reduction of biodiesel taxes from 12 percent to 5 percent. Biodiesel is an essential ingredient supplied to oil marketing companies for creating a blend with diesel.
She added that the said extension for the concessional GST Rates relevant to the COVID-19 Treatment drugs will get levied on December 31. Its exemption is, however, active only till September 31.
Drugs that Availed Green Flag on Extended Concessional Rates!
The important drugs that help in winning the fight against coronavirus are Amphotericin B (nil), Tocilizumab (nil), and Remdesivir (5 pc). Apart from that, there is also some presence of anti-coagulants like the Heparin- (5pc).
The Finance minister also claimed that the transport of export products via vessels will also benefit from the GST until this September 30. Said exemption existed due to exporters’ glitches after fetching the refunds on ITC (Input Tax Credit). It was due to technical problems existent on the GST Portal.
Reasons for Tax Exemption on COVID-Related Medicines!
Last year’s drug sale chart depicts a few life-saving drugs with no direct relation to corona that surged up at a massive level. The government allowed an exemption of this type of drug. Viltepso and Zolgensma are amongst the two leading drugs that could cost somewhere around Rs.16 Crores. Hence, the council allowed GST exemption on these drugs.
Apart from the above, the minister also said that the drugs for muscular atrophy treatment also availed exemption for IGST on imports related to self-use. Even Cancer-relevant medicines like ‘Keytruda’ and others in the same line can get a 12 to 5 percent concession! The decision has backing from the Health Ministry and Department of Pharmaceuticals.
Also, the National Permit Fee that states charge for allowing goods permit through vehicles within the country gets GST exemption.