GST cuts on several Covid essentials; no change in tax on vaccines

Centre to share 70% of vaccine revenue with states, says FM Sitharaman

The Goods and Services Tax (GST) Council, at its “single-agenda” meeting, on Saturday decided to retain the GST on Covid-19 vaccines at 5 per cent. However, it temporarily slashed the tax rates on most supplies and also exempted drugs for treating the black fungus.

The Council decisions are in line with the recommendations made by a Group of Ministers (GoM), which was mandated to examine tax exemption and concessions on various Covid items including vaccines, drugs, and equipment. The GoM which submitted its report early this week recommended keeping rates on Covid vaccines unchanged, owing to the issue of multiple