No tax on black fungus medicine

No tax on black fungus medicine
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No tax on black fungus medicine

Highlights

  • 5% GST to continue on Covid vaccines
  • Rates on Covid material, ambulances slashed
  • GST rates have been decided for four categories of products -- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other Covid-19-related relief material

New Delhi: The GST council on Saturday cleared the recommendation on tax slab on vaccines and other Covid-related material. Now, 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.

However, no tax will be charged for medicines like the monoclonal antibody Tocilizumab and Amphotericin B, used for treating black fungus, a fungal disease that affects people infected with Covid. The tax cuts are valid till September 30 and may be extended.

"GST rates have been decided for four categories of products -- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other Covid-19-related relief material," Union Finance Minister Nirmala Sitharaman said after the GST Council meeting.

"Five per cent GST on vaccines continues. The Centre will buy 75 per cent of vaccines as announced earlier and will also pay its GST. However, 70 per cent of income from GST will be shared with states," Sitharaman said.

She said, "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 as against August end recommended by the GoM."

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