The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 12th day of June, 2021, Saturday, via video conferencing in New Delhi.
Union minister of state (MoS) for finance Anurag Thakur and finance ministers of states and Union territories (UTs) attended the virtual meeting, which was held to finalise modalities to compensate states for their revenue shortfall of Rs 2.35 lakh crore in the current financial year.
Proposal at this meeting: To reduce the GST rates on the specified items being used in Covid-19 relief and management like hand sanitisers, face masks, gloves, PPE Kits, temperature scanners and others and to take a decision on relief in respect of COVID-19 related individual items based on the report of Group of Ministers.
Previous Meeting (43rd GST Council Meeting): It held on 29th day of May, 2021, where the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM) and took several decision to help the industries affected by Covid-19. The Council had also decided in previous meeting to reduce the compliance burden of small taxpayers and medium-sized taxpayers and recommended an amnesty scheme for reducing late fee payable, to provide relief to small taxpayers. (Click here to read 43rd meeting highlights)
◊ 44th GST COUNCIL MEETING KEY HIGHLIGHTS
1. The tax rate on ventilators, medical grade oxygen, COVID-19 testing kits, oxygen concentrators and BiPAP machine have been brought down to 5 percent from 12 percent at present.
2. The GST on anti-coagulants like Heparin, high flow nasal canula (HFNC) device and pulse oximeters has been reduced to 5 percent from 12 percent at present.
3. The GST on hand sanitisers and temperature check equipment has been reduced to five percent from 18 percent at present.
4. 5% GST on vaccines will stay.
5. “GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material.
6. GST Council approved all recommendations of GoM on rate rationalisation. GST on ambulances reduced to 12 percent.
7. The Centre will buy the 75 per cent vaccine as announced and will pay its GST too. But 70 per cent of income from GST will be shared with States.
Must Read: Recommendations of 44th GST Council Meeting- Change in GST Rates
◊ The details of recommendations on GST Rates are given below :
| S. No. | Description | Present GST Rate | GST Rate recommended by GST Council |
| A. Medicines | |||
| 1. | Tocilizumab | 5% | Nil |
| 2. | Amphotericin B | 5% | Nil |
| 3. | Anti-Coagulants like Heparin | 12% | 5% |
| 4. | Remdesivir | 12% | 5% |
| 5. | Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment | Applicable Rate | 5% |
| B. Oxygen, Oxygen generation equipment and related medical devices | |||
| 1. | Medical Grade Oxygen | 12% | 5% |
| 2. | Oxygen Concentrator/ Generator, including personal imports thereof | 12% | 5% |
| 3. | Ventilators | 12% | 5% |
| 4. | Ventilator masks / canula / helmet | 12% | 5% |
| 5. | BiPAP Machine | 12% | 5% |
| 6. | High flow nasal canula (HFNC) device | 12% | 5% |
| C. Testing Kits and Machines | |||
| 1. | Covid Testing Kits | 12% | 5% |
| 2. | Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| D. Other Covid-19 related relief material | |||
| 1. | Pulse Oximeters, incl personal imports thereof | 12% | 5% |
| 2. | Hand Sanitizer | 18% | 5% |
| 3. | Temperature check equipment | 18% | 5% |
| 4. | Gas/Electric/other furnaces for crematorium, including their installation, etc. | 18% | 5% |
| 5. | Ambulances | 28% | 12% |
◊ Validity of this revised rates:
The new rates will remain in effect till September 30, 2021 and can be extended further upon nearing the deadline.
Source: Press Release / Twitter
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What is the GST rate on oxygen gas generation plant.
GST Rates notified w.r.t. 44th GST Council Meeting
GST notification: Seeks to provide the concessional rate of CGST on Covid-19 relief supplies, up to and inclusive of 30th September 2021
Notified vide Notification No. 05/2021-Central Tax (Rate) on 14th June, 2021
HSN CODE WILL REMAIN SAME ? OR THERE IS ANY CHANGE IN THAT
Date of implementation ?
GST Rates notified w.r.t. 44th GST Council Meeting
GST notification: Seeks to provide the concessional rate of CGST on Covid-19 relief supplies, up to and inclusive of 30th September 2021
Notified vide Notification No. 05/2021-Central Tax (Rate) on 14th June, 2021
Nicely presented.
From which date the reduuced GST rates will become applicable?
Good after noon sir,
oxygen concentrator new rate applicable from which date?
Nicely presented.
From which date the reduuced GST rates will become applicable?
Nicely explained…I constantly follow your articles and like them a lot…Keep it up
From which date the reduuced GST rates will become applicable? 13.06.2021, but not issued Notification, we will wait for for Notification?
can you send the notification