GST Tax Rate reduced on COVID-related medicines and equipments

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The 44th GST Council meeting was held in New Delhi on 12 June 2021, by video conference call under the chairmanship of SMT Nirmala Sitharaman, Minister of Finance and Corporate Affairs. The virtual meeting took place in order to finalize mechanisms for compensating States for the income deficit of their 2.35 lakh crore Rs in the current financial year.

Furthermore, The 43rd GST Council meeting majorly focused on providing COVID-19 relief to the taxpayers and patients suffering from the dreadful coronavirus pandemic. It was attended by Anurag Thakur, the State Minister for Finance (MOS), and by the State and Union Territory Finance Ministers. In this article, we will read about the GST Tax Rate reduced on COVID-related medicines and equipment.

Reduction of IGST on COVID-19 Related Goods

Several Covid-19 related goods, such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic marker test kits and vaccinations, were recommended in full by the GST Council for exemption from IGST. The IGST Exemption is valid even if imported on the basis of payment to government donations or a recommendation from a State agency to any relief agency.

Important Note: The waiver is valid until 31 August this year.

GST Tax Rate reduced on COVID-related medicines and equipment

The following tables properly explain the GST Tax Rate reduced on COVID-related medicines and equipment.

Revised GST rates on Covid-19 Medicines

Medicine Name  Present GST Rate  Revised GST Rate
Any other drug 

recommended by the Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment

Applicable Rate  5%
Amphotericin B 5%  Nil
Anti-Coagulants like Heparin 12%  5% 
Remdesivir 12% 5%
Tocilizumab 5%  Nil

Revised GST Rate on Oxygen, Oxygen generation equipment and related
medical devices



Present GST Rate Revised GST Rate 
Medical Grade Oxygen 12% 5%
Oxygen Concentrator/ Generator, including personal imports thereof 12% 5%
Ventilators 12% 5%
Ventilator masks / canula / helmet 12% 5%
BiPAP Machine 12% 5%
High flow nasal cannula (HFNC) device 12% 5%

Revised GST Rates on Testing Kits and Machines

Item Name Current GST Rate Reduced GST Rate
Covid Testing Kits 12% 5%
Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH 12% 5%

Revised GST Rates on Other Covid-19 related relief materials

Item Name Current Rate of GST Revised Rate of GST
Pulse Oximeters, incl personal imports thereof 12% 5%
Hand Sanitizer 18% 5%
Temperature check equipment 18% 5%
Gas/Electric/other furnaces for the crematorium, including their installation, etc. 18% 5%
Ambulances 28% 12%

Important Note: The revised pricing will stay in force until 30 September 2021 and can be extended as per the government’s later decisions.

No tax on Black Fungus medicine: 44th GST Council meet

Another significant relief for Taxpayers and patients with Amnesty Scheme is No tax on Black Fungus medicine.

Finance minister Nirmala Sitharaman after the GST 44th Council meeting announced that mucormycosis medicine Amphotericin B would not be charged any tax.

Furthermore, to diagnose the infection adequately, the government has offered at least 170,000 vials of Amphotericin B to all states and territories of the Union on Saturday.

COVID19 related relief measures for GST taxpayers

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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