All eyes on GoM call on taxing Covid items

Under the GST laws, hundreds of mass consumption items and essential services are exempted fully or attract a lower rate of tax than the standard rate of 18%

The Goods and Services Tax (GST) Council has decided to constitute a Group of Ministers (GoM) to recommend within 10 days the tax rates on items, including vaccines, required to deal with Covid-19 pandemic. It has also recommended full tax exemption on imports of drugs required for treating black fungus disease and imports of Covid-related medicines and medical equipment for free distribution when purchased from abroad. 

In a press conference after the GST Council meet on Friday, the government attributed its reluctance for rate cuts to apprehensions about whether the private hospitals will pass on the benefits of any rate cuts