At present, Goods and Services Tax is levied at the rate of 5% on vaccines and 12% on COVID-19 drugs and oxygen concentrators for domestic supplies and commercial imports. For oxygen concentrators imported for personal use, the government has reduced GST rate from 28% to 12% and waived customs duties. Better optionA taxation expert, on condition of anonymity, said reducing the GST on final products as well as raw materials, or zero-rating supplies, would be a better option than an outright GST exemption. “A concessional GST rate of 1% can be levied for COVID-19 vaccines. The tax expert quoted earlier said that reducing GST rates of raw materials could minimise the input tax credit issues and other options could also be considered to cut prices of COVID-19 supplies.

Source: The Hindu May 11, 2021 12:22 UTC