GST Council meeting on Saturday for essential Covid items

The meeting will be held after the Group of Ministers (GoM) constituted by the Council to assess tax on Covid essentials submits its report on Tuesday.
For representational purposes. (File Photo)
For representational purposes. (File Photo)

NEW DELHI:  The GST Council is likely to meet on Saturday to discuss the taxation of essential Covid-19 supplies.

The meeting will be held after the Group of Ministers (GoM) constituted by the Council to assess tax on Covid essentials submits its report on Tuesday.

The meeting is expected to deliberate exemptions and concessions on Covid-related items, based on the report. 

While the committes’s report is yet to be made public, sources in the finance ministry claim that there had been no consensus on zero GST on vaccines and say that the matter has been referred back to the Council, which will now take forward the discussions and observations on Saturday.

In the last GST Council meeting on May 28, a GST waiver for COVID-19 vaccines, medicines, medical grade oxygen, pulse oximeters, test kits, hand sanitisers, oxygen therapy equipment, ventilators and other supplies had been on top of the agenda. 

With too many dissenting opinions, the finance minister formed a GoM headed by Meghalaya Chief Minister Conrad Sangma. But after deliberations, no consensus was reached on the tax rates on vaccines.

However, there was general consensus that Covid essentials, including oxymetres, testing kits, PPE kits, medical oxygen should be taxed at 5 per cent.

The Union Government will now procure 75 per cent of all the vaccines produced in the country and provide them to states for free.

However, the private procurement of 25 per cent of vaccines would require a payment of 5 per cent Goods and Services Tax. 

The GoM includes Gujarat Deputy Chief Minister (CM) Nitinbhai Patel, Maharashtra Deputy CM Ajit Pawar, Goa Transport Minister Mauvin Godinho, Kerala Finance Minister KN Balagopal, Odisha Finance Minister Niranjan Pujari, Telangana Finance Minister T Harish Rao and Uttar Pradesh Finance Minister Suresh Kumar Khanna. 

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