Finance Minister Nirmala Sitharaman said that if GST is removed from the medicines of Corona, then it will become expensive.
At present, domestic supply and commercial imports of Corona Vaccine attract a 5 percent GST (GST) in the country. At the same time, 12% GST is applicable on medicines used in the treatment of Kovid-19 and Corona Medicines and Oxygen Concentrators.
New Delhi. The central government has refused to remove the Goods and Services Tax (GST) on domestic supply of Domestic supply and commercial imports of Corona Medicines, vaccines and oxygen concentrators. Finance Minister Nirmala Sitharaman said that if GST is removed, then all these items will become expensive for the general consumer. He said that with the removal of GST, their manufacturers will not be able to claim input-tax-credit (ITC) for the tax on raw materials used in production. ‘Companies will recover the entire cost from ordinary customers if GST is removed’ Domestic supply of vaccine and commercial import in the country currently attracts 5% GST. At the same time, 12% GST is applicable on medicines and oxygen concentrators used in the treatment of Kovid-19. Finance Minister Sitharaman replied in a tweet seeking exemption from GST on these goods, saying that if the entire 5% discount is given on vaccine, then vaccine manufacturers will not get the benefit of deduction of tax on raw material. In such a situation, they will recover the entire cost from the customers. ITC benefits to manufacturers due to the introduction of GST. If ITC is more then they can claim refund. Therefore, consumers will be at a disadvantage if exempted from GST. Also read- Indian Railways increased special trains for Uttar Pradesh and Bihar, some were extended, tickets started booking from todayStates get Rs 70.50 in IGST of Rs 100 Finance Minister Sitharaman said that if 100 rupees are received on some goods as Integrated GST (IGST) then half of the amount goes to the account of both Central GST (CGST) and State GST (SGST). Apart from this, 41 percent of the amount received by the Center as central GST is also given to the states. In this way, out of every 100 rupees, a total of 70.50 rupees is the share of the states. He said that it is in the interest of the companies and the general public to make GST vaccine at the rate of 5 per cent. Please tell that West Bengal Chief Minister Mamata Banerjee has written a letter to Prime Minister Narendra Modi during the day. Explain that the Central Government has already given exemption in IGST and customs duty on many items used in the treatment of corona.