GST Council makes Black Fungus drugs tax free, continues 5 % GST on COVID vaccine

GST Council Meeting: No tax on Black Fungus drugs, 5 % GST to continue on COVID-19 essentials
Image: Nirmala Sitharaman Finance Minister/Twitter

Union Finance Minister Nirmala Sitharaman on June 12, 2021, chaired the 44th GST Council meeting through video conferencing.

Under her leadership, the GST Council accepted GoM’s recommendation on rates of COVID-19 essentials and announced new rates.

While the council reduced GST on Ambulance to 12 percent, the GST rate for the COVID-19 vaccine remained unchanged.

The council also decided not to levy GST on Amphotericin B, an antifungal medicine that is widely used for the treatment of black fungus.

“GST on electric furnaces and temperature checking equipment brought down to 5% and on ambulances to 12%. These rates will be valid till September as against August end recommended by the GoM,” Finance Minister Nirmala Sitharaman said on the outcome of 44th GST Council meeting.

“GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material. Rates to be announced soon,” Finance Minister Nirmala Sitharaman said.

“Five percent GST on vaccines will stay. The Centre will buy the 75 percent vaccine as announced and will pay its GST too. But 70 percent of income from GST will be shared with states,” Nirmala Sitharaman said while justifying the decision to maintain GST on vaccines.

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