GST Council Meet on June 12: Finance Minister Nirmala Sitharaman to take call on GST rate cut for COVID essentials, black fungus medicine

Finance Minister Nirmala Sitharaman will chair the GST Council meet on June 12. The all-powerful council will discuss and implement GST rate cut for COVID essentials and black fungus medicine

Officials said the GST Council would be meeting on June 12, to discuss the GoM report as well as consider tax rate cuts for black fungus medicine. Source: PTI

Finance Minister Nirmala Sitharaman will chair the GST Council meet on June 12. The all-powerful council will discuss and implement GST rate cut for COVID essentials and black fungus medicine, officials told PTI. The date confirmation comes after a Group of Ministers (GoM) that was set up to recommend tax relief on COVID essentials, including PPE kits, masks and vaccines, to the GST council submitted its report on June 7. GoM was set up in the previous meeting of GST council on May 28.

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Officials said the GST Council would be meeting on June 12, to discuss the GoM report as well as consider tax rate cuts for black fungus medicine.

Some state Finance Ministers in the GoM are understood to have pitched for a rate cut on COVID essentials.

Uttar Pradesh Finance Minister Suresh Kumar Khanna, who is also a member of the GoM, on Wednesday said that the state is in favour of cutting taxes on COVID essentials to facilitate patients but will accept the decision of the GST council on tax rates.

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

Besides, the panel also looked into COVID vaccines, drugs, and medicines for COVID treatment and testing kits for COVID detection.

The GST Council on May 28 left taxes on COVID-19 vaccines and medical supplies unchanged after the BJP and opposition-ruled states sparred over whether the tax cut benefits will reach the common man.

However, Goods and Services Tax (GST) was exempted on import of Amphotericin B -- a medicine used for treatment of black fungus.

Congress and other opposition ruled states have been demanding a reduction in taxes but the central government felt the move may not result in tangible gains for people.

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

(With PTI Inputs)

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