GST Information: GST price for COVID-19 medicines pegged at 5% GST: govt

COVID-19 medicines and devices are being bought at a GST price of 5 per cent whereas different medicines are bought at a GST price between 5 and 12 per cent ever because the pandemic began, Union Minister of State for Finance Pankaj Chaudhary mentioned within the Lok Sabha on Monday. Chaudhary additionally mentioned that 66 per cent of government-sponsored medical insurance schemes within the nation are being run by the central authorities.

“When the COVID-19 pandemic began, a choice was made on the market of all medicines on the GST price between 5 and 12 per cent and the GST price for COVID-19 associated medicines and devices has been diminished to 5 per cent,” he mentioned through the Query Hour.

The minister mentioned the GST price for medical insurance is eighteen p.c, which is as per worldwide requirements, and much like what it was throughout pre-GST days within the nation.

He mentioned senior residents can avail tax rebate of as much as Rs 1 lakh on medical insurance insurance policies.

Chaudhary mentioned GST charges and exemptions on all providers (together with GST on medical insurance premium) are prescribed on suggestions of the GST Council which is a constitutional physique comprising Union Finance Minister and ministers as nominated by respective state and union territory governments.

“At current, Items and Providers Tax (GST) on medical insurance providers is levied at customary price, i.e., 18 per cent. Particular medical insurance schemes catering to the wants of economically weaker sections of the society and otherwise abled, resembling Rashtriya Swasthya Bima Yojana (RSBY), Common Well being Insurance coverage Scheme, Jan Argoya Bima Coverage and Niramaya Well being Insurance coverage Scheme are totally exempt from GST,” he mentioned.

Additional, he mentioned, healthcare providers are additionally exempt from the GST.

Representations to cut back the GST on medical insurance had been positioned earlier than the GST Council in its thirty first assembly held on December 22, 2018 and in its thirty seventh assembly held on September 20, 2019.

The GST Council didn’t make a advice for the discount of GST, he mentioned.
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