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COVID-19 – MP Urges the Govt to Quit GST on MPLADS Funds

Local MPs Urge the Govt to Quit GST

The amount of GST paid on purchasing the emergency health care equipment for the Kanyakumari government hospital has exceeded Rs. 10 lakh, said Rajya Sabha MP, A Vijaykumar. The aid of Rs, 1Cr was given from the Members of Parliament Local Area Development Scheme (MPLADS) fund to fight against the crises caused due to COVID-19 outbreak. GST is applied to all the bills sanctioned from MPLADS.

MP has broadcasted a copy of the bill on social media to avoid any misconceptions and improve transparency. While his actions have created a resonance of kindness everywhere in Kanyakumari, GST applicability is being criticized as the amount charged from him is high. People said that the GST to be paid (on the funds from MPLADS) is equivalent to the cost of three ventilators in the order.

Read Also: FM Reliefs GST & Tax Compliance Over COVID-19 Pandemic The union finance minister Nirmala Sitharaman has finally taken some relief measures on the basis of currently widespread coronavirus pandemic. The decisions. Read More

The annual outgo of funds from MPLADS say Rs. 5 Crore attracts the GST of approx. Rs. 50 lakhs to 75 lakhs. “No offense against the payment of GST but the government must understand the sensitivity of the situation and waive GST on emergency healthcare equipment hired for combatting Coronavirus”, said Vijaykumar. He further added that he is planning to extend a considerable share from his MPLADS funds for 2020-21 to completely seize the COVID-19 cases and he expects the government to waive 12% GST for the cause from w.e.f. 1 April 2020.

Su Venkatesan (Madhurai MP) allotted the share of Rs. 56.17 lakhs from his MPLADS fund dedicated to lifesaving medical equipment and protective gear for health care professionals at the Madurai medical college hospital. “When the availability of ventilators is hit, why should GST be charged on it?” He also opposed the levy of GST (Goods and Services Tax) Get to know about detailed information regarding levy and collection of CGST and SGST in India including various aspects of supply chain of goods and services. Read More on the purchase of lifesaving equipment to treat COVID-19 positive cases.

Similarly, S Gnanathiraviam (Tirunelveli MP) has granted the aid of Rs. 86 Lakhs from his MPLADS funds and also urged the government to eliminate GST on the purchase of lifesaving equipment to combat COVID-19.

Vijaykumar managed to buy the equipment including nine ventilators for Kanyakumari hospital by approaching the people concerned and highly influential people in health ministry amid the hardship in acquiring the equipment due to political pressure and also the competition from private hospitals that have their eyes on the limited resources available with the companies. “I m planning to post on social media about the difficulty I have faced while purchasing the equipment”, said Venkatesan.

Tuticorin MP, Kanimozhi Karunanidhi has made it to the list of MPs who have allotted funds for COVID-19 treatments. He is granted the huge sum of Rs. 1 Cr. from his MPLADS funds for allotting the equipment to healthcare professionals for testing, scanning and treating COVID-19 cases.

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