Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
Open DEMAT Account with in 24 Hrs and start investing now!
GST - Goods and Services Tax »
Open DEMAT Account in 24 hrs
  All you need to know about Auto-Drafted GSTR-2B GST
 Recent GST clarifications and their impact: Tax relief in milling, pharma, education, food sectors
 E-way bills point to pickup in GST receipts in July
 E-way bills signal coming jump in GST collections
 Why the distortions built into GST are coming undone
 GST Amnesty Scheme and Benefits
 GST committee recommends against lowering tax rate on vaccines
 Haryana offers to refund GST on donated medical supplies
 CBIC notifies changes in GST Refund related Rules
 Compliances under GST for NRIs
 GST applicable on Reverse Charge basis on Amount Paid for Reimbursement of Stamp Tax as Pure Agent: AAR
 GSTN added New features in GST Search Taxpayer tab at GST Portal
 Central govt's indirect tax collection up 12% in FY21, GST number falls
 Why HSNs are showing invalid on GST Portal? Read the Troubleshooter for 4-digit or 6-digit HSNs
 5 online certification courses on GST in India New career path for GST practitioners

GST committee recommends against lowering tax rate on vaccines
May, 26th 2021

The fitment committee of the GST Council, a key panel of Centre and state officials which looks into tax rate changes, has recommended against lowering the tax rate on vaccines from the present 5%.

It said that granting complete exemption would result in increased cost of production, because the domestic manufacturers of Covid-19 vaccines would not be able to take input tax credit for tax paid on their input goods and services.



Some states have demanded that vaccines be exempted or be levied a minimal tax rate of 0.1%

The committee has recommended reduction in medical grade oxygen, oxygen concentrators and pulse oximeters to 5% from 12% till the end of July. For Covid-19 testing kits, the rate reduction to 5% has been recommended till August-end.

The key panel of officials has argued that since vaccines were almost entirely being procured by the central and state governments and being provided free of cost, the GST would eventually accrue to the Centre and states.


Despite the demands for lowering tax rates on Covid-19 related drugs and medicines, the committee has not given any recommendation as Covid-19 treatment protocol was being altered based on new learnings.

The recommendations are likely to be taken up at the GST Council meeting on Friday, following which a final decision will be taken.

 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2021 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting