GST Exemption on Specified Medicines used in COVID-19

The 45th GST Council meeting extends concessional GST rates on drugs used in COVID treatment till December 31st, 2021. To implement recommendations made by the GST Council meeting, The Central Board of Indirect Taxes and Customs (CBIC), vide various notifications published on 30th September 2021 announced the GST exemption on specified medicines used in COVID-19 up to 31.12.2021. The current article briefs the GST rate exemption on specified medicines used in COVID-19 treatment. Know more about Income Tax Exemption for Expenditure on Covid Treatment

The Gist of CBIC Notification

As mentioned above, the 45th GST council extended the GST relief on drugs related to Covid-19 treatment till December 31st. CBIC vide various notifications dated:30th September 2021 announced the rate of GST on medicines used in COVID-19 treatment:

Central Tax Rate for medicines used in COVID-19 - Notification No. 12/2021- Central Tax (Rate )dated 30th September 2021
Integrated Tax Rate for medicines used in COVID-19 - Notification No. 12/2021-Integrated Tax (Rate) dated 30th September 2021
Union Territory Tax Rate for medicines used in COVID-19 - Notification No. 12/2021-Union territory Tax (Rate) dated 30th September 2021.

CBIC also announced that these notifications will come into force from the 1st day of October 2021 and remain in force up to and inclusive of the 31st December 2021.

Extension of Existing Concessional GST rates on Key COVID-19 Medicines

The Goods and Service Tax Council, in its 43rd meeting, slashed the GST rates on several items crucial in the fight against the COVID-19 pandemic. These reduced GST rates were applicable till September 30th, 2021. As per the 45th GST Council meeting, Concessional GST rates on Covid-related drugs, which were till September 30, have now been extended till December 31 for COVID – 19 medicines. The details of GST rates on Key COVID-19 Medicines are discussed in this article.

COVID-19 Relief Measure in Form of GST Rate Concessions

The 45th meeting GST Council meet announced the extension of concessions to specified drugs used in Covid treatment till December 31, 2021. These medicines include the following:

Amphotericin B
Remdesivir
Tocilizumab
Anti-coagulants like Heparin

GST rate on seven more drugs useful for Covid-19 patients has been slashed till December 31 to 5 percent from 12 percent including the following:

Itolizumab
Posaconazole
Favipiravir

Note: The GST rate on the medicine used for the treatment of cancer has also been reduced to 5 percent from 12 percent. Life-saving drugs used in the treatment of spinal muscular atrophy, particularly for children, have also been exempted from GST when imported for personal use.

Central Tax Rate for COVID-19 Medicine

Central Board of Indirect Taxes and Customs (CBIC) vide a Notification No. 12/2021- Central Tax (Rate) dated 30th September 2021 announced the Integrated Tax Rate for COVID-19 Medicine:

Sl.No	Description of Goods	Central Tax Rate
1	Tocilizumab	Nil
2	Amphotericin B	Nil
3	Remdesivir	2.5%
4	Heparin (anticoagulant)	2.5%
5	Itolizumab	2.5%
6	Posaconazole	2.5%
7	Infliximab	2.5%
8	Bamlanivimab & Etesevimab	2.5%
9	Casirivimab & Imdevimab	2.5%
10	2-Deoxy-D-Glucose	2.5%
11	Favipiravir	2.5%

Integrated Tax Rate for COVID-19 Medicine

Central Board of Indirect Taxes and Customs (CBIC) vide a Notification No. 12/2021-Integrated Tax (Rate) dated 30th September 2021 announced the Integrated Tax Rate for COVID-19 Medicine

Sl.No	Description of Goods	Integrated Tax Rate
1	Tocilizumab	Nil
2	Amphotericin B	Nil
3	Remdesivir	5%
4	Heparin (anticoagulant)	5%
5	Itolizumab	5%
6	Posaconazole	5%
7	Infliximab	5%
8	Bamlanivimab & Etesevimab	5%
9	Casirivimab & Imdevimab	5%
10	2-Deoxy-D-Glucose	5%
11	Favipiravir	5%

Union TerritoryTax Rate for COVID-19 Medicine

Central Board of Indirect Taxes and Customs (CBIC) vide a Notification No. 12/2021-Union territory Tax (Rate) dated 30th September 2021 announced the Union TerritoryTax Rate for COVID-19 Medicine

Sl.No	Description of Goods	Union TerritoryTax Rate
1	Tocilizumab	Nil
2	Amphotericin B	Nil
3	Remdesivir	2.5%
4	Heparin (anticoagulant)	2.5%
5	Itolizumab	2.5%
6	Posaconazole	2.5%
7	Infliximab	2.5%
8	Bamlanivimab & Etesevimab	2.5%
9	Casirivimab & Imdevimab	2.5%
10	2-Deoxy-D-Glucose	2.5%
11	Favipiravir	2.5%