In the wake of India facing the crisis of medical-grade oxygen, life-saving medicines such as Remdesivir and most importantly hospital beds, request from various social and political circles have come to the government to reduce or remove the various types of taxes on the aforesaid items — GST, CGST, IGST, custom duties and so on. While Some states have also called for an emergency meeting for reducing or removing the aforesaid taxes, other states have already taken the action to reduce or remove it.
Here are the Various Updates
Oxygen cylinders and related instruments: Medical-grade oxygen attracts a GST of 12 percent. However, A recent plea was filed with the Supreme Court that seeks to lift GST on medicines like Remdesivir, Favipiravir, Tocilizumab and have also requested the government to exempt oxygen from the domain of GST.
Previously, a GST of 28 percent was imposed on “Oxygen concentrators for personal use” However, last week, the Central Government has declared that the Goods and Services Tax on “Oxygen concentrators for personal use” shall be reduced to 12 percent.
Moreover, in the last week, the Centre has also exempted the custom duty on import of oxygen concentrators, cylinders, and so on. Lastly and Importantly, On May 3, 2021, the aforesaid items were also exempted from the domain of the Integrated GST (IGST).
Crucial drugs: As of now drugs like Remdesivir, Tocilizumab, Favipiravir, and others are now exempt from IGST as well as customs duties, still there has been no clarity on the GST they would attract when manufactured in India. Consequently, a couple of states are seeking an emergency meeting of the GST council which has not been made in the last 6 months.
Read Also: SC: Plea by NGO for 12% GST Exemption on Covid Drugs & Equipment
As per the Health Minister of the state of Chhattisgarh TS Singh Deo “We have placed the order with Mylan for 90,000 injections at the rate of Rs 1,400-plus-12 percent GST. Around 2,000 injections will come in two days and another 28,000 within a week, which makes it 30,000 a week”
Ambulances: The cost of an ambulance ranges from Rs 7 lakh to Rs 50 lakh, depending on various factors like its size, the amount of medical equipment it has, and so on. The GST applicable on a vehicle that is fitted as an ambulance is 28 percent. It is worth mentioning here that GST is applicable to purchasing an ambulance, but no GST is imposed on providing ambulance services.
Ventilators: Presently, Ventilators and other artificial respiration devices are charged a GST of 12 percent. However, Imported ventilators are now exempt from import duties in addition to IGST.
