FM rules out GST waiver on Covid vaccines, says move will make them costlier

TIL Desk/Business/New Delhi/ Finance Minister Nirmala Sitharaman on Sunday virtually ruled out exempting Covid vaccines, medicines and oxygen concentrators from GST, saying such an exemption will make the lifesaving items costlier for consumers as manufacturers will not be able to offset the taxes paid on inputs.

Currently, domestic supplies and commercial imports of vaccines attract a 5 per cent Goods and Services Tax, while COVID drugs and oxygen concentrators attract a 12 per cent levy.

Congress working president Sonia Gandhi had last month demanded that all life-saving drugs, equipment and instruments required to treat Covid-19 patients must be exempted from GST. West Bengal Chief Minister Mamata Banerjee has also made a similar demand.