Business Desk: Industry body PHD CCI has welcomed the reduction of Goods and Services Tax (GST) on some drugs, equipment and goods used in the treatment of Kovid 19 and said that it will bring relief to the patients. The industry body said in a statement that the decision to reduce rates on medicines, equipment and COVID test kits has been 'very deliberate'.
This will help a lot in the treatment of infected patients, which was much needed. The organization has expressed hope that the government will continue to take more necessary reformative steps to reduce the ill effects of the Kovid epidemic and to get India out of it.
It is noteworthy that the GST Council on Saturday decided to cut the tax rate on some medicines and devices used in the treatment of this epidemic amid the second wave of Kovid-19. However, the tax rate of five per cent on the Kovid vaccine will remain the same. Finance Minister Nirmala Sitharaman gave information about the decisions of the council.
The government has said that the continuance of GST of five per cent of the GST on vaccines will allow manufacturers to avail the benefit of the tax paid on the inputs involved in manufacturing the medicine. Since the central government is giving most of the vaccines free of cost, there will be no tax burden on the common people.
In the 44th meeting of the Council, chaired by the Finance Minister, the tax rate on drugs Remdesivir and Tocilizumab and oxygen concentrators and other devices used in the treatment of Kovid-19 has been reduced. The council has also decided to reduce the GST on ambulances from 28 per cent to 12 per cent.