No tax on black fungus medicines, 5 per cent GST on vaccines

Tax on medicines, some hospital equipment and other items needed in the fight against COVID-19 has been reduced by the Goods and Services Tax Council. The tax cut is based on recommendations by a Group of Ministers amid the pandemic, whose crippling effects on the economy has also hurt household finance. A 5 per cent GST will continue to be applied on vaccines, while 12 per cent to 5 per cent GST will be charged on oximeters. Also, the GST rates on ambulances have been reduced from 28 per cent to 12 per cent.

Finance Minister Nirmala Sitharaman said in New Dehi that  the GST on electric furnaces and temperature checking equipment was brought down to 5 per cent and on ambulances to 12 per cent. These rates will be valid till September. Moreover, the tax on black fungus medicine has been brought down to zero. No tax will be charged for medicines like the monoclonal antibody Tocilizumab and Amphotericin B, used for treating Black Fungus, an opportunistic fungal disease that affects people infected with Covid. There is no change in the GST rate of some items being charged at 18 per cent, such as RT-PCR machines.

The 44th GST Council held under the Chairmanship of FM Smt @nsitharaman has decided to reduce the GST rates on the specified items being used in COVID-19 relief and management till 30th September, 2021.

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— Ministry of Finance (@FinMinIndia) June 12, 2021