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GST Council leaves tax rate on vaccines unchanged

The Council exempts levy of I-GST on import of Amphotericin-B, which is used for the treatment of black fungus.

The GST Council on May 28 left taxes on COVID-19 vaccines and medical supplies unchanged but exempted duty on import of a medicine used for treatment of black fungus.

A Group of Ministers will deliberate on tax structure on the vaccine and medical supplies, Finance Minister Nirmala Sitharaman told reporters after a meeting of the GST Council.

The GST Council, which is headed by the Union Finance Minister and comprises representatives of all States and Union Territories, exempted levy of I-GST on import of Amphotericin-B, which is used for the treatment of black fungus.

Currently, vaccines attract 5% GST.

Ms. Sitharaman said the Council decided to continue a waiver of I-GST on free COVID-19 related supplies imported from abroad.

Also, the panel decided that the Centre will borrow ₹1.58 lakh crore and pass it on to the states to make up for the shortfall in their revenues from the implementation of the GST. A special session of the Council will be held soon to consider extending the five-year GST shortfall compensation period to states beyond 2022.

The panel provided relief to small GST taxpayers through an amnesty scheme for late return filers.

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