Highlights of 44th GST Council Meeting dated 12.06. 2021

Looking for the updates of the 44th GST Council Meeting? Here are the most important ones-

Introduction

The 44th GST Council meeting was held on 28th of May, 2021 under the charimanship of Finance Minister Smt. Nirmala Sitharaman through video conferencing in the National Capital. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/ UTs. Let us have a look at the outcome of the 43rd GST Council Meeting Held on 12.06.2021.

Today’s meeting was held with a single-agenda that was to decide the tax rate on the COVID 19 related essentials. In the 43rd GST Council Meeting, a Group of Ministers was constituted to examine the situation and to come up with recommendations on tax relief for Covid-19 essentials.

Relief on the Tax of COVID 19 related essentials

• Based on the recommendations of the GoM, the GST Council today has cut tax rates on most supplies and exempted the black fungus medicine off GST.
• Hence, there will be No GST be levied on Black Fungus Drug “Amphotericine B”.
• Also, It has been decided that there would be Nil Tax on Tocilizumab.
• However, COVID vaccines will continue to attract a five per cent GST.
• GST on ventilators, medical oxygen, COVID testing kits has been reduced to to 5% and on Ambulance the GST rate brought down to 12%.
• GST rate for electric furnaces and temperature checking equipment brought down to 5%.
• These reduced rates will be valid till September as against August end as recommended by the GoM.

On not reducing the GST rates on vaccines, Finance Minister Nirmala Sitharaman said that “The Centre will buy the 75% vaccine as announced and will pay its GST too. But 70 per cent of income from GST will be shared with States. Hence, When Centre is purchasing and paying GST too on Covid-19 vaccines and they are being given free of cost to the public, the GST rate will make no difference or impact on the people”

I hope this article was helpful. Refer to the topics discussed in the 43rd GST Council meeting.

Download-The PDF for Press Release of 44th GST Counsel Meeting.