The government has exempted basic customs duty on imports of specified APIs/excipients for Amphotericin B and raw materials for manufacturing COVID test kits.
In a notification dated July 12, the Finance Ministry said the basic customs duty exemption on raw materials for manufacturing COVID test kits would be till September 30, 2021.
While the exemption on specified APIs/ excipients for Amphotericin B would be valid till August 31.
Last month, the Finance Ministry’s Revenue Department had notified the lower rates for 18 COVID related supplies, like hand sanitiser, pulse oximeters, BiPAP machine, testing kits, ambulances and temperature check equipment. These concessional rates would be applicable till September 30, 2021.
GST on COVID-19 drug Tocilizumab and black fungus medicine Amphotericin B was reduced to ”nil”, from five per cent.
The rate on Remdesivir and anti-coagulants like Heparin is lowered from 12 per cent to five per cent.
GST rate on ambulances was cut to 12 per cent from 28 per cent.
Tax on medical grade oxygen, oxygen concentrator (including personal imports), ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been reduced to five per cent from 12 per cent.
Also, tax on Covid testing kits, pulse oximeter (including personal imports) has been brought down to five per cent from 12 per cent.
Hand sanitisers, temperature check equipment, gas/electric furnaces for crematoriums too will attract lower five per cent tax, from 18 per cent earlier.
COVID test kits attract a five per cent GST rate (till September 30 and this exemption will further reduce the cost for the manufacturers and therefore, the general public.
(Edits by EP News Bureau)