No GST on COVID Relief Products 

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The 43rd GST Council meeting majorly focused on providing COVID-19 relief to the taxpayers and patients suffering from the dreadful coronavirus pandemic. The GST council meeting was held in New Delhi on 28th May 2020, under the Chairmanship of Union Finance Minister Smt. Nirmala Seetharaman. The meeting was held via video conferencing, and the finance minister announced several reliefs in various aspects. In this article, we will read about No GST on COVID Relief Products.

GST Tax Rate exempt on COVID Relief Products

The major COVID-19 Relief measures include Integrated Goods and Services Tax (IGST) exemption on several COVID-19 relief import supplies. These supplies include

  • Medical oxygen,
  • Oxygen concentrators & other oxygen storage and transportation equipment,
  • Diagnostic markers test kits
  • All COVID-19 vaccines, etc.

IGST exemption will be valid on these supplies if imported on a payment basis for donating to the government or any other COVID relief agency under the recommendation by the state authority.

Important Note – The IGST Exemption on Covid Relief products as mentioned above is allowed up to 31st August 2021.

COVID-19 Relief Measures (Custom Duty and IGST Exemption) for Goods

  • The COVID-19 treatment supplies listed above have already been exempted from the Basic Customs duty.
  • Moreover, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution.
  • As a consequence of the 43rd GST council meeting, the same is now extended till 31st August 2021.

The remedy against Black Fungus and GST Tax Relief for Individual Items

The GST Council meeting also kept in mind the relief measures for new horrifying diseases, i.e., Black Fungus.

Accordingly, extending the IGST exemption on Amphotericin B (antifungal medication) also.

Furthermore, in order to support the LympahticFilarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from an earlier rate of 12%).

The GoM’s report is likely to be released on 8th June 2021 on relief in the individual item of COVID-19.

Covid-19 Vaccine chargeable to GST tax or not ?

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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