Summary of Points Finalized in the Meeting

Single Agenda: Tax Relief on COVID-19 Related Goods
The meeting focused on reviewing and approving recommendations from the Group of Ministers (GoM) on granting GST relief to COVID-19–related items such as vaccines, medicines, oxygen equipment, testing kits, and other essential materials.

Key Recommendations by the GoM
The GoM, chaired by the Chief Minister of Meghalaya, prioritized relief for the common man while safeguarding domestic manufacturing and government revenues. It avoided zero-rating or 0.1% GST rates due to long-term structural implications and suggested limited rate reductions or exemptions.

Vaccines
The GST rate on vaccines was retained at 5%, as vaccines were largely procured by the Central Government, resulting in minimal impact on consumers. Zero-rating or 0.1% rate was rejected to avoid disruptions in the GST framework.

Medicines

Tocilizumab and Amphotericin B (for treating severe COVID and Black Fungus) were exempted from GST.

Other COVID-related medicines’ GST rate was reduced to 5%.
These measures aimed to reduce treatment costs for patients while maintaining manufacturing incentives.

Oxygen and Related Equipment
Oxygen, concentrators, generation equipment, and related devices were placed under 5% GST to support healthcare infrastructure while benefiting end users.

Testing Kits and Machines

COVID-19 testing and diagnostic kits (e.g., D-Dimer, IL-6) — rate reduced to 5%.

No change for genome sequencing or RT-PCR machines as they were largely purchased earlier.

Other COVID-19 Relief Materials

Hand sanitizers: GST reduced from 18% to 5%.

Pulse oximeters: GST reduced from 12% to 5%.

Temperature checking equipment: reduced from 18% to 12%.

Gas/electric crematorium furnaces: reduced from 18% to 12% (later 5% approved).

Ambulances: retained at 28%, later reduced to 12% after Council discussion.

PPE kits and masks: no rate change (already at 5%).

Consensus and Modifications

The Council accepted the GoM report with modifications proposed by the Hon’ble Finance Minister.

Exemptions extended till September 2021, with possible review based on health ministry inputs.

The GST Implementation Committee (GIC) was authorized to extend exemptions if required without convening another Council meeting.

Final Decision
The Council unanimously adopted the GoM’s recommendations (with modifications) to provide immediate GST relief on COVID-19–related items, balancing public welfare and revenue considerations.