The Central Board of Indirect Taxes and Customs(CBIC) on the recommendation of the 43rd GST Council Meet chaired by the Union Finance Minister, Nirmala Sitharaman, notified 5% Goods and Service Tax (IGST) to be payable on Diethylcarbamazine.
The Press Release of 43rd GST Council Meet said, “to support the Lympahtic Filarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5%.”
Earlier, 12% GST (6% CGST and 6% SGST) was applicable on Diethylcarbamazine, however, from 2 June, 2021 it has been reduced to 5% (2.5 SGST and 2.5% CGST) keeping in view the current pandemic situation.
The CBIC in exercise of the powers conferred by sub-section (1) of section 5 of the Goods and Services Tax Act, 2017 read with sub-section (5) of section 15 of the Goods and Services Tax Act, 2017 has notified the amendment in Notification No.1/2017- Integrated Tax (Rate), dated the 28th June, 2017 which specified integrated tax rate for the list of goods.
In the said notification, in Schedule I, against S. No. 259A, for the entry in column (2), the entry “9503” shall be substituted.
The S.No.259A deals with Toy balloons made of natural rubber latex and earlier the entries were 4016. However, now it has changed to 9503.
It can be said that 5 percent GST is applicable on the items which are enlisted in Schedule I of the Notification No.1/2017- Integrated Tax (Rate), dated the 28th June, 2017.
After Schedule I, in the List 1, after serial number 230 and the entries relating thereto, the following shall be inserted, namely “(231). Diethylcarbamazine ”.
This notification shall come into force on the 2 June, 2021.
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