GST Council is likely to extend concessions to specified drugs used in COVID-19 treatment till December 31
The 45th GST Council meeting will be held in Lucknow on Friday to take forward some of the crucial issues. CNBC-TV18 brings to you source-based information on the crux of what can be expected from this meet.
GST Council is likely to extend concessions to specified drugs used in COVID-19 treatment till December 31. GST Council had earlier recommended GST rate reduction, till 30th September, 2021, on certain items used in COVID treatment along with the 4 medicines on which taxes were reduced. GST on black fungus medicine — Amphotericin B, was reduced from 5 percent to Nil, GST on Tocilizumab was reduced from 5 percent to Nil, GST on Remdesivir was reduced from 12 percent to 5 percent and GST on anti-coagulants like Heparin was reduced from 12 percent to 5 percent.
Sources say, “Council in further view to extend more relief by reducing GST rates from 12 percent to 5 percent, till December, 31, 2021,”. These drugs are – Itolizumab, Posaconazole, Infliximab, Bamlanivimab & Etesevimab, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose, Favipiravir.
The Fitment Committee has also proposed changes on several other medical and health essentials, which are likely to get the GST council nod.
Fitment Committee has proposed, “to issue a clarification on concessional GST rate of 12 percent is applicable on Diagnostic reagents and Laboratory reagents, to exempt GST on medicine Zolgensma and Viltepso, when imported for personal use (rare disease medicines), To reduce GST on Retro Fitment Kits used by disabled to be from 5 percent/28 percent to 5 percent, reducing GST rate to 5 percent on Oncology medicines such as Keytruda, as recommended by Health ministry; current GST levy is 12 percent,” sources added.
However, the Fitment Committee has rejected the proposal impacting pharma majors to reduce GST on APIs from 18 percent to 12 percent. Also, it was not in favour to reduce the GST on Jute/bamboo/other natural fibre and face mask/sanitizers and all COVID related test kits manufactured by small farmers/ women‟s cooperatives/ Indian scientists/ entrepreneurs to “nil or zero”, sources added.
Source: cnbctv18.com
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