Sunday, October 2, 2022

Will Corona vaccine, medications be tax-free? Today, the GST Council meeting will be advised

GST waiver on Corona Drugs: Government can remove GST on medicines, products, equipment, and vaccines needed to treat corona. Many states have demanded this from the central government. The decision to remove or reduce GST can be taken in the GST Council meeting to be held today. This meeting will be chaired by Finance Minister Nirmala Sitharaman. 

Zero GST on Corona Vaccine!

The 43rd meeting of the GST Council is to be held today, after a long wait of 7 months, the states have expressed happiness over calling the 43rd meeting of the GST Council, the states hope that the government can give this relief about the GST amid Corona epidemic. At present, 5% GST is levied on the vaccine, while on the medicines and oxygen concentrators associated with the corona, 12% GST is applied. Some states have demanded to abolish or reduce GST on all these products of Corona.

Letter has been written to PM Modi

West Bengal Finance Minister Amit Mitra said that on May 9, he wrote a letter to Prime Minister Narendra Modi, asking him to remove all taxes and customs duties on all types of devices and medicines used in the fight against the Kovid epidemic. But nothing happened. Before the meeting of the GST Council, Amit Mitra hoped that in the current crisis, the Council would work beyond all the technical hurdles and bureaucratic hurdles. 

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Advantages and disadvantages of reducing GST?

Let me tell you that a few days ago there was a meeting of the fitment panel, in which there was a discussion on reducing or zeroing the GST on the corona vaccine and its related products. The panel consisted of officials of the Central, State, and GST Council Secretariat. The panel has prepared a list of the advantages and disadvantages of changes in the GST and the impact on the cost of the vaccine, which can be discussed in the GST Council meeting to be held today.

Will the price increase with the abolition of GST?

Let us tell you that when the states had demanded the government to abolish the GST on the medicines and vaccines used in the treatment of corona, then Finance Minister Nirmala Sitharaman had clarified that it would have the opposite effect, medicines should be expensive rather than cheap Will go. He had said that if the entire 5 percent discount is given on the vaccine, then the vaccine manufacturers will not get the benefit of the tax deduction given on the raw material, in which case they will recover the cost from the customers and the prices will go up. 

Actually, when GST is levied on something, manufacturers take input tax credit from the government on that product, but when GST becomes zero, manufacturers cannot claim the input tax credit, then they will compensate the customers. 

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