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44th GST Council Meeting Updates

•The 44TH GST Council Meeting had taken place on June 12, 2021 during which the council decided to reduce GST tax for several medical supplies and equipment in the wake of the second wave of the COVID-19 pandemic in India.

•The council had agreed to cut GST rates for ambulances from 28 percent to 12 percent, hand sanitisers from 18 percent to 5 percent and for temperature check equipment from earlier 18 percent to 5 percent.

•The GST rate for pulse oximeters was also reduced from 12 percent to 5 percent and COVID-19 testing kits, medical-grade oxygen and ventilator from 12 percent earlier to 5 percent. The GST Council had also agreed then to continue the tax rates of five percent for COVID vaccines.

45th GST council meeting:

Finance Minister Nirmala Sitharaman chaired the 45th Meeting of the Goods and Services Tax (GST) Council in Lucknow on September 17, 2021. While addressing the media on the outcomes of 45th GST Council meeting, FM Sitharaman said that the Council has taken quite a few people-friendly decisions.

The 45th GST Council meeting was attended by finance ministers from all states and several senior officers and hosted by Chief Minister and Finance Minister of Uttar Pradesh. This is the first time that a GST Council meeting took place in Lucknow, capital of Uttar Pradesh. It is also the first physical meeting of the GST Council following the outbreak of COVID-19.

45th GST council meeting: Key Decisions
•The Finance Minister announced that the GST Council has decided to exempt the following life-saving drugs that are not connected with COVID-19 but are very expensive from GST taxation:

-Zolgngelsma and Viltepso- These drugs cost around Rs 16 Cr.
-Drugs to treat muscular atrophy have also been exempted from IGST for import on personal use

The GST Council has also decided that the concessional GST rates on COVID-19 related medicines that were announced earlier till September 30, will now be extended till December 31, 2021.

•This extension has only been given for medicines that were given exemption earlier and not medical equipment. The medicines include:

-Amphotericin B (0%)
-Tocilizumab (0%)
-Remdesivir (5%)
-Heparin (5%)

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