State notifies GST reduction for Covid drugs, equipment
Following the Goods and Services Tax (GST) Council decision to cut rates on Covid-related medicines, oxygen concentrators, and testing kits, the state government has notified the reduction in GST rates on 18 items.
While the GST has been completely withdrawn on Tociluzumab and Amphotericin-B, all the other products will be levied with a nominal rate of 2.5% state GST.
The notification issued by the undersecretary for finance Pranab Bhat said that the special GST rates would be applicable till September 30, 2021.
On June 12, 2021 the GST Council headed by Union finance minister Nirmala Sitharaman decided to slash rates of several Covid-19 drugs and medical items to 5% from the existing 12 to 18%. The state will levy 2.5% and the Centre will levy 2.5% on the items.
“The government of Goa, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,” said the government notification.
Medical oxygen, Remdesvir, Covid-19 testing kits, pulse oximeters, oxygen concentrators, ventilators, and other medical devices will be charged 5% GST.
The rates are effective from June 14 and will continue till September 30, 2021. The GST council has said that the discounted GST rates could be extended based on future requirements.
