The eight-member group of ministers (GoM) constituted to deliberate on the Goods and Service Tax to be levied on COVID relief material, has recommended that the GST on vaccines be determined by the GST Council.
In this regard, it has referred the matter back to the council, people aware of the details reported The Economic Times.
As a result, this GST council will now need to sit once again to make a decision on these rates.
“The GST Council should decide the rate on vaccines, it has been recommended by GoM,” a senior official said, asking not to be named.
Further, this GoM has also suggested that a reduction in GST rates be made on COVID relief material, to 5% on items including medical grade oxygen, oxygen concentrators, pulse oximeters and Covid testing kits.
This also includes granting an exemption for drugs used in the treatment of black fungus, the report said.
At the earlier GST Council meet held on May 28, Amphotericin B, a drug used in cases of mucormycosis was granted an exemption. However, it had proposed setting up a GoM committee to look into further exemptions that can be provided on account of the COVID-19 relief measure.
The GoM was constituted after several states in the GST Council meeting sought for complete tax waiver on Covid-related vaccines, medicines and other materials and equipment
The Council had given this GoM time until June 8 to come up with its decisions.
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