GST Council Exempts Duty on Import of Black Fungus Medicine

29 May, 2021 15:25 IST|Sakshi Post

The GST Council has decided to keep the tax rate for Covid vaccines unchanged. 

Covid-19 vaccinations are currently subject to a 5% tax

The GST Council left taxes on Covid-19 vaccinations and medical supplies unchanged on Friday but exempted a drug used to cure black fungus of the charge.

New Delhi: After a meeting of the GST Council, Finance Minister Nirmala Sitharaman told reporters that a panel of ministers will discuss the tax structure on vaccines and medical goods.

The GST Council, which was chaired by the Union Finance Minister and included representatives from all states and union territories, exempted Amphotericin-B, which is used to treat black fungus, from the I-GST fee.

Vaccines are currently subject to a 5% GST.

According to Sitharaman, the Council opted to keep the I-GST exemption for free Covid-19-related items supplied from abroad.

The panel also determined that the Centre will borrow Rs 1.58 lakh crore and pass it on to the states to cover the revenue gap caused by the GST implementation.

The Council will convene a special session soon to discuss extending the five-year GST deficit compensation term to states beyond 2022.

Small GST taxpayers were given relief by the panel under an amnesty programme for late return filers.

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