The GST Council on Friday extended concessional tax rates on COVID-19 medicines, cut tax on cancer drugs and waived GST on import of highly expensive medicines for muscular atrophy. There will be no GST on Amphotericin B, Tocilizumab till December 31, GST Council said. GST rate on Amphotericin B, Tocilizumab was cut to ‘Nil’ in June 2021. Remdesivir and Heparin will continue to attract the reduced GST rate of 5 per cent till the year-end.
More Covid-19 treatment drugs such as Favipiravir will be charged a reduced rate of 5 per cent till December 31, she said. However, the concessional tax for medical equipment will end on September 30.
The GST Council also approved the proposal of reducing GST from 12 per cent to 5 per cent to the seven more drugs till December 31, 2021. These are Itolizumab, Posaconazole, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab, 2-Deoxy-D-Glucose and Favipiravir, sources said.
GST on import of muscular atrophy drugs like Zolgensma and Viltepso, which cost crores of rupees, was exempted. The medicine Keytruda, used for the treatment of cancer, will now attract a lower 5 per cent tax as against 12 per cent previously.
The GST Council also waived 12 per cent IGST on import of medicines Zolgensma for spinal muscular atrophy and Viltepso for Duchenne muscular dystrophy. These drugs cost up to Rs 16 crore.
“The extension of relief on COVID drugs is on the expected lines and additionally the council has exempted or slashed GST rates on some more life saving drugs,” said Divakar Vijayasarathy, founder and managing Partner, DVS Advisors LLP.
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