|

Full Exemption Or nominal GST on COVID VACCINE & other items?

The GST Council will consider whether COVID-19 vaccines should be exempted from the Levy at a meeting on Friday the two options under consideration as suggested by some of the states are to completely removed GST on vaccine or level nominal .1% Tax .

The council will also take a proposal for production or exemption with regard to Covid related products and legislative changes to the GST framework made in the last budget.

The fitment panel comprising the center state govt and Gst Council secretaraits secretary of fiscal met last Thursday to examine solution on GST reduction and exemption involving various items including vaccine Covid related material and disability aids    it has drawn up a list of advantages and disadvantages of such changes and impact on price on vaccines.

GST exemption for vaccine need to be examined in detail as there has been instances of price rising after such a move due to embedding of ITC 

Pros  and cons of both complete exemption and level of minimal tax have been examined to be presented to the council if any item is exempt from GST manufacturers cannot claim ITC paid on such materials in such a situation the price without GST could be higher as all the inputs are included in the cost    a nominal tax of .1% will allow ITC

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *