Covid: Govt justifies tax on vaccine, lists relief on items after Mamata letter

Union Finance Minister Nirmala Sitharaman responded to West Bengal CM Mamata Banerjee’s letter on tax relief. The Bengal CM had written to PM Modi seeking tax relief on items key in Covid war. Nirmala Sitharaman justified GST on vaccines and listed tax relief on other items. "Goods and Services Tax (GST) at rates varying from 5 per cent (on vaccines), 12 per cent (COVID drugs, oxygen concentrators) is applicable to domestic supplies and commercial import of these items. If IGST ₹100 is collected on an item, ₹50 accrues to the Centre and the States each as CGST and SGST respectively. Further 41 per cent of the CGST revenue is devolved to States. So out of a collection of ₹100, as much as ₹70.50 is the states' share," the Union Minister said. Watch the full video for more.