GST Council Extends Concessional Rates On COVID-Related Medicines Till Dec 31

Lucknow : The GST Council on Friday extended Goods and Services Tax concessions on COVID-related medicines till December 31 this year.

She said extension has been given in existing concessional GST rates on COVID-19 treatment drugs up to December 31. The exemption was valid till September 30.
These drugs are Amphotericin B (Nil), Remdesivir ( 5 %), Tocilizumab (Nil) and anti-coagulants like Heparin – (5 %).

GST rates on 7 other medicines recommended by Department of Pharmaceuticals reduced from 12% to 5% till 31st December 2021, namely-Itolizumab, Posaconazole, Infliximab, Favipiravir, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose and Bamlanivimab & Etesevimab.

GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5%.

The minister spoke about tax concessions on medicines not related to COVID-19.

“We have seen in the last one year and probably earlier that some life-saving drugs, which are not connected with Corona and are very expensive. Exemptions have been given for such drugs. I am giving the names of two because those two are very expensive drugs — Zolgensma and Viltepso. These two are very important drugs which cost something like Rs 16 crores. So the council has decided to grant exemption from GST for these two for personal use,” she said.

“Drugs that are suggested by the Ministry of Health for treating muscular atrophy, on the recommendation of Health Ministry and Department of Pharmaceuticals, are also exempted for IGST on import for personal use. The concessional GST rates on corona-related medicines have been extended till December 31, 2021. ” she added.

Sitharaman said that cancer-related drugs – Keytruda – along with similar other medicines used in the treatment of cancer as per the Health Ministry are being recommended for tax concession from 12 to 5 per cent.

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