44th GST Council Meeting Highlights dt.12.06.2021

Outcome 44thGST Council Meeting

Outcome of 44th GST Council Meet

The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. NirmalaSitharaman via video conferencing today i.e. 12th day of June, 2021, Saturday, via video conferencing in New Delhi.

Union minister of state (MoS) for finance Anurag Thakur and finance ministers of states and Union territories (UTs) are also attending the virtual meeting, which is being held to finalise modalities to compensate states for their revenue shortfall of Rs 2.35 lakh crore in the current financial year.

Proposal at this meeting: To reduce the GST rates on the specified items being used in Covid-19 relief and management like hand sanitisers, face masks, gloves, PPE Kits, temperature scanners and others and to take a decision on relief in respect of COVID-19 related individual items based on the report of Group of Ministers.

Previous Meeting (43rd GST Council Meeting): It held on 29th day of May, 2021, where the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM) and took several decision to help the industries affected by Covid-19.The Council had also decided in previous meeting to reduce the compliance burden of small taxpayers and medium-sized taxpayers and recommended an amnesty scheme for reducing late fee payable, to provide relief to small taxpayers.

  • 44thGST COUNCIL MEETING KEY HIGHLIGHTS
  1. The tax rate on ventilators, medical grade oxygen, COVID-19 testing kits, oxygen concentrators and BiPAP machine have been brought down to 5 percent from 12 percent at present.
  2. The GST on anti-coagulants like Heparin, high flow nasal canula (HFNC) device and pulse oximeters has been reduced to 5 percent from 12 percent at present.
  3. The GST on hand sanitisers and temperature check equipment has been reduced to five percent from 18 percent at present.
  4. 5% GST on vaccines will stay.
  5. “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.
  6. GST Council approved all recommendations of GoM on rate rationalisation.GST on ambulances reduced to 12 percent.
  7. The Centre will buy the 75 per cent vaccine as announced and will pay its GST too. But 70 per cent of income from GST will be shared with States.
  • The details of recommendations on GST Rates are given below :
S. No.DescriptionPresent GST RateGST Rate recommended by GST Council
Medicines
1.Tocilizumab5%Nil
2.Amphotericin B5%Nil
3.Anti-Coagulants like Heparin12%5%
4.Remdesivir12%5%
5.Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatmentApplicable Rate  5%
Oxygen, Oxygen generation equipment and related medical devices
1.Medical Grade Oxygen12%5%
2.Oxygen Concentrator/ Generator, including personal imports thereof12%5%
3.Ventilators12%5%
4.Ventilator masks / canula / helmet12%5%
5.BiPAP Machine12%5%
6.High flow nasal canula (HFNC) device12%5%
Testing Kits and Machines
1.Covid Testing Kits12%5%
2.Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH12%5%
Other Covid-19 related relief material
1.Pulse Oximeters, incl personal imports thereof12%5%
2.Hand Sanitizer18%5%
3.Temperature check equipment18%5%
4.Gas/Electric/other furnaces for crematorium, including their installation, etc.18%5%
5.Ambulances28%12%
  • Validity of this revised rates:

The new rates will remain in effect till September 30, 2021 and can be extended further upon nearing the deadline.

Source: Press Release / Twitter

About the Author:

CS LALIT RAJPUT

Company Secretary having 6+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. He is an active blogger and author at various platforms including Taxmann, Caclubindia, Tax Concept, Compliance Calendar LLP, in studycafe,Taxguru, Ipleaders etc. He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.

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