Karanataka minister Bommai hails tax cut on Covid goods

Bengaluru: Karnataka home minister Basavaraj Bommai welcomed the recommendations of the Group of Ministers (GoM) to reduce taxes on Covid-19 medicines and said it would ease pressure on people suffering from the virus as taxes on several items have been reduced

Bengaluru: Karnataka home minister Basavaraj Bommai welcomed the recommendations of the Group of Ministers (GoM) to reduce taxes on Covid-19 medicines and said it would ease pressure on people suffering from the virus as taxes on several items have been reduced.

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The GST Council on Saturday slashed the tax rate on medicines such as Remdesivir and equipment like oxygen concentrators and medical grade oxygen. The tax cut is based on recommendations by GoM amid the pandemic.

“In today’s GST Council meeting, the GoM submitted their report and it was discussed in the Council. GoM recommended a reduction in the rate of tax on some medicines from 5% to nil, remdesivir from 12% to 5% and oxygen generation equipment and covid testing kits from 12% to 5%. For temperature checking equipment and gas/electric furnaces for the crematorium, GoM recommended a reduction from 18% to 12%. No reduction was recommended on ambulances,” read a statement.

“The minister also thanked the union finance minister and Government of India for approving GST compensation loan of ₹18109 Crore for 2021-22 and stated that this will help in the fight against Covid.”