The Goods and Service Tax (“GST”) Council, after its 43rd Meeting on May 28, 2021 had constituted a Group of Ministers (“GoM”) to deliberate on the rate of taxes on COVID-19 critical items – a consideration that was highly needed and awaited. After the recommendations were submitted by the GoM, the GST Council convened its 44th Meeting on June 12, 2021 and provided substantial relief in the GST rates for COVID-19 essential items. The recommendations as provided by the Council in the meeting are as follows:
These reduced GST rates shall remain in force till September 30, 2021.
The single-point agenda of the 44th GST Council Meeting provides great relief to taxpayers and consumers in reducing costs of essential commodities. However, the GST rate on COVID-19 Vaccines were not reduced from the existing 5% as it allows manufacturers to get the benefit of Input Tax Credit (“ITC”). The impact of this 5% GST rate on vaccines is envisioned to not burden the common man, as the Government shall be procuring and giving vaccines to the citizens for free.
Please find a copy of the Press Release here.
This update has been contributed by Ajay Sanwaria (Counsel) and Ritwika Pati (Associate).
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