The finance department of the state government said in an order that full reimbursement of GST paid on 15 select medical supplies used in covid treatment including Remdesivir injections, covid vaccines and oxygen concentrators will be granted when these are supplied free of cost to state government or its medical facilities.

The items covered under the scheme include ventilators and oxygen filling, storage and transport equipment, the order showed.

The move is significant as it takes away the tax burden on businesses and non-government organisations engaged in medical relief work.

The order said that the state was facing acute shortage of liquid medical oxygen and other health equipment such as ventilators and medicines. It acknowledged that a large number of businesses, individuals and other agencies were coming forward to help the state in stepping up health infrastructure and equipment supplies by way of donations.

“In order to encourage such efforts, it is necessary in the public interest to facilitate donation of such items…,’" the order said, adding that the reimbursement will cover the state GST, central GST and integrated GST components. The scheme will remain effective till end of June. To be eligible for GST reimbursement, these medical supplies have to be given to the state government or to a hospital run by it or to any institution permitted to receive such supplies.

Experts said this was a much-needed step. “This is a much required and appreciated step on the part of the Haryana government, as businesses involved in donation activities for covid relief had to unnecessarily bear the GST cost for their philanthropy. It will be good to see even other states follow suit," said Abhishek Jain, Tax Partner, EY.