Lower GST on Covid Vax, Medical gear: Opposition states

Opposition-ruled states have urged Union finance minister Nirmala Sitharaman to take up the crucial problem of decreasing taxes on Covid-related vaccines, ventilators, oxygen cylinders and different medical gear in the course of the Goods and Service Tax Council assembly on Friday.

West Bengal finance minister Amit Mitra wrote to Sitharaman, the GST Council chair, to just accept the state authorities’ proposal of zero tax on Covid related vaccines, medicine and gear.

“This will allow manufacturers and their entire supply chain entrepreneurs to avail input tax credit. Therefore, there would be no adverse effect on prices for consumers,” Mitra mentioned in a letter, which ET has seen.

Punjab finance minister Manpreet Badal requested for a dialogue on exemption of built-in GST on oxygen concentrators imported for private use, on which the Delhi High Court gave a optimistic ruling final week. “We need a GST with a heart, and I strongly urge you to place this agenda in the ensuing meeting,” Badal mentioned, referring to the excessive taxes on primary necessities wanted to fight the ‘life-threatening’ Covid-19 pandemic. ET has reviewed a duplicate of the letter.

Badal mentioned many items confronted primary customs obligation as much as 20% and GST as much as 18%, apart from social welfare surcharge of 10%, with IGST on imports growing the burden by one other 2-3%.

He additionally sought the appointment of a vice-chair to the GST Council from among the many states and activating the dispute decision mechanism below the Constitution, which he mentioned will additional strengthen the federal construction of the Council.

Saying that everyone states face income deficits – Punjab as excessive as 50% – Badal requested that the ground and band of charges inside which states can repair their SGST charges after June 2022, must be mentioned as effectively.

Full GST Waiver to Raise Cost of Vax Production: Fitment Committee
The fitment committee of the GST Council has really helpful in opposition to decreasing the tax charge on vaccines from the current 5%. It mentioned that granting full exemption would end in elevated price of manufacturing, as a result of the home producers of Covid-19 vaccines wouldn’t have the ability to take enter tax credit score for tax paid on their enter items and companies. S-ET

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