The Tamil Nadu Finance Minister, Palanivel Thiaga Rajan while giving his maiden speech at the 43rd GST Council meet said that levy 0% GST for essential Corona medicines at least for a temporary period.
The Finance Minister while highlighting the fact that containing the Covid-19 pandemic is currently the highest priority task for both the Central Government and State Governments in India.
“As you are aware, there are many essential medical supplies being purchased for the battle against Covid-19 virus. The primary purchases are (i) Covid-19 vaccines by State Government and (ii) purchase of medicines including Remdesivir and Tocilizumab,” the Palanivel Thiaga Rajan while addressing the 43rd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman said.
In his speech he further added that at least for a temporary period, zero rate of Goods and Services Tax (GST) should be levied on Covid-19 vaccines, Remdesivir and Tocilizumab by State Government and agencies. This will ensure that the cost of these essential items is reduced significantly, without the suppliers having to absorb any reversal of input tax credit.
“Our Chief Minister has already written to the Hon’ble Prime Minister on this issue and accordingly I request that a decision can be taken on zero rating GST on such essential items. The agenda item relating to this issue points out certain legal issues in enabling such zero rating,” he said.
With regard to the Fitment Committee proposal for correction of the Inverted Rate Structure on textiles and footwear, Palanivel Thiaga Rajan views that due to the prevailing pandemic situation, this issue may be deferred for the next meeting. As regards the issue of Extra Neutral Alcohol (ENA) taxability under the GST, this may also be deferred as a consensus still eludes us.
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