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GoM to take a call on GST exemption on Covid items

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Tribune News Service

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New Delhi, May 28

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A Group of Ministers (GoM) will decide within 10 days the question of providing GST exemption on Covid-related items, Union Finance Minister Nirmala Sitharaman announced at the end of the 46th GST Council meeting held via video-conferencing on Friday.

“There were protracted discussions with varying viewpoints. I announced the formation of a GoM which will submit its report by June 8 so that any further reductions that need to be done will be done,” she said, pointing out that any duty relief must benefit patients and not the intermediaries. The council, meeting after eight months, agreed to extend GST relief on several Covid-related items till August 31. It also decided to exempt Amphotericin-B drug used to fight black fungus from GST as well as waive IGST on Covid-related supplies purchased for donation to the government.

The GoM was set up after hours of discussions failed to break the stalemate. Several Opposition-ruled states, including Punjab, pressed for complete GST exemption on vaccines, oxygen concentrators, oximeters, Covid test kits and ventilators. The Centre backed the recommendations of the rate fitment committee which has recommended rate cuts on four Covid-related items. It has left out over 10 Covid-related items, including vaccines, from further GST cuts. Sitharaman had expressed the same viewpoint while responding to West Bengal CM Mamata Banerjee’s letter earlier this month.

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In all, the GST Council took seven decisions, including fixing compensation to states at Rs 1.58 lakh crore using the same methodology and formula as last year. The Centre will facilitate back-to-back borrowings by states from the RBI, Sitharaman said.

Spl session to weigh further relief to states

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