COVID: Centre extends tax exemption from relief items including vaccines, oxygen equipment

On Monday, the Central Government further extended the exemption from Customs Duty/health cess on import of COVID relief items, including COVID-19 vaccine and oxygen-related equipment. In a statement by the Ministry of Finance, the notice of exemption till August 31 has been extended till September 30. In May, the Central Government had issued notifications exempting Basic Customs Duty and Health cess on imports of several COVID-related relief materials for a limited period. 

The official handle of the Central Board of Indirect Taxes & Customs (CBIC) tweeted regarding the development. 

On Sunday, the CBIC also extended the deadline for citizens to file their returns left due to various reasons. 

In May, the Finance Ministry had also reduced the Integrated Goods and Services Tax (IGST) rate on the import of oxygen concentrators for personal use from 28 per cent to 12 per cent amid the acute shortage of medical oxygen in several parts of the country. 

GST council slashes Tax Rates on COVID relief supplies

Considering the grim situation of the second wave of COVID-19, the Goods and Services Tax Council in June had reduced the tax rates on essential COVID-related supplies and exempted critical medicines for treating the black fungus infection from the GST. The tax deductions were kept valid till September 30, and at that time it was said it could be extended further upon nearing the deadline, the Council had said. The decision was taken by Finance Minister Nirmala Sitharaman in the 44th GST council meeting on June 12, in New Delhi via video conferencing.

GST Rate Cuts On COVID-19 Medicines:

• No tax will be levied on drugs like Tocilizumab and Amphotericin B, which are used to treat mucormycosis - a fungal disease that affects Coronavirus patients.
• GST rates on anti-coagulants like heparin as well as Remdesivir - a drug for treating COVID-19, have been reduced from 12 per cent to 5 per cent.
• The tax rate on any other drug recommended by the health ministry and for COVID-19 treatment is also reduced from 12 per cent to 5 per cent.
• Tax rates slashed on Oxygen Generation Equipment, related medical devices.

The GST Council has reduced tax rates on medical grade oxygen, oxygen concentrator/generator, including personal imports, ventilators, ventilator masks /canula /helmet, BiPAP machine, electric furnaces and high flow nasal cannula (HFNC) devices from 12 per cent to 5 per cent. Besides, GST rates on temperature checking equipment have been reduced from 18 per cent to 5 per cent, and on ambulances from 28 per cent to 12 per cent. 

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