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).
Argus Knowledge Centre is now on WhatsApp! Send us a message on +91 8433523504 to receive updates from our Knowledge Centre.
7A, 7th Floor, Tower C, Max House,
Okhla Industrial Area, Phase 3
New Delhi – 110020
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.