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SC: Plea by NGO for 12% GST Exemption on Covid Drugs & Equipment

GST Exemption on Covid Drugs and Equipment

During the second wave of the Corona pandemic, when more than 1 crore people in India have been caught by a deadly communicable Coronavirus disease, its high time for the Judiciary, Legislation, and Executive to take and implement apt decisions to control and cure such a common illness at the price (medical treatment) that can be afforded by general public considering the fact that poverty rate in India is 28% of total population (as per statistics released by United Nations in 2019).

In line with the aforesaid noble thought, an NGO Public Policy Advocates has filed a plea in the Supreme Court that seeks a GST exemption in the price of Corona-related drugs and medical equipment. The medicines and medical equipment include (but not limited to) Remdesivir, Favipiravir, Tocilizumab, and other drugs with a similar generic constitution. It also includes medical equipment (including but not limited to) ventilators & Bipap machines and other medical treatments for treating this deadly communicable Coronavirus disease.

It is worthwhile to mention here that section 11 of the Central Goods and Services Tax Act 2017 empowers the Central government to exempt the aforesaid drugs and medical equipment from levying Goods and Services Tax of 12% if the “Goods and Services Tax council” make recommendations and Central Government gives green signal to it. The NGO has accused the Central government of showing apathy by not taking the aforesaid decision of GST exemption in Corona-related drugs and medical equipment.

The aforesaid NGO, “Public Policy Advocates”, has prayed to the honourable court to issue directions to the Central Government to convene a meeting of the GST council on the issue of GST exemption of Corona-related drugs and medical equipment.

In the past 15 days, the sudden increase in Corona-related drugs and medical equipment has led to black marketing and hoarding of aforesaid drugs and medical equipment.

The Plea Pinpointed That

“The right to health in times of pandemic assumes an ever more crucial significance since affordable healthcare and availability of drugs which are critical to fighting moderate and severe cases of illness have to be given paramount importance. This would have the effect of preventing black marketing, hoarding of such drugs and other medical equipment, as well as would ensure that the same is available to the citizens at affordable cost.”

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