GST Rate reduction related to Covid related goods

Rohit Kumar Singh | Last updated: 18 June 2021

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The GST Council has announced a reduction in GST rates for various goods and services crucial for Covid-19 relief and management. This includes medical oxygen, testing kits, sanitiser, ventilators, and more, with rates lowered to 5% or nil in some cases. Additionally, the GST on construction services for funeral, burial, or cremation structures has been reduced to 5%. These reduced rates are effective until 30th September 2021.

Pursuant to the GST Council recommendations in their 44th meeting held on 12th June 2021 via video conferencing, CBIC has issued notifications relaxing GST rate on goods being used in Covid 19 relief and management.

The changes are summarized below for ease of understanding –

GST Rate Cuts for Covid Goods and Funeral Services

A. Reduction in GST rates for goods used in Covid-19 relief and management

CBIC, vide Notification No. 05/2021-Central Tax (Rate), dated 14^th June 2021 including corrigendum issued on 15^th June 2021, has reduced GST rates (reduction up to 30^th Sept. 2021) on below goods -

S. No	Chapter Head	Description	Rate of GST
1	2804	Medical Grade Oxygen	5%
2	30	Tocilizumab/ Amphotericin B	NIL
3	30	Remdesivir/ Heparin (anti-coagulant)	5%
4	3002 or 3822	Covid-19 testing kits	5%
5	3002 or 3822	Inflammatory Diagnostic (marker) kits, namely- IL6, DDimer, CRP (C-Reactive Protein), LDH (Lactate DeHydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents	5%
6	3808 94	Hand Sanitizer	5%
7	6506 99 00	Helmets for use with non-invasive ventilation	5%
8	8417 or 8514	Gas/Electric/other furnaces for crematorium	5%
9	9018 19 or 9804	Pulse Oximeter	5%
10	9018	High flow nasal canula device	5%
11	9019 20 or 9804	Oxygen Concentrator/ generator	5%
12	9018 or 9019	Ventilators	5%
13	9019	- BiPAP Machine - Non-invasive ventilation nasal or oronasal masks for ICU ventilators - Canula for use with ventilators	5%
14	9025	Temperature check equipment	5%
15	8702 or 8703	Ambulance	12%

B. Reduction in GST rates for construction service used for funeral, burial or cremation

Rate of GST on Service on construction services w.r.t. structure for funeral, burial or cremation of deceased has been reduced to 5% vide Notification No. 04/2021-Central Tax (Rate), dated 14^th June, 2021 with effect from 14^th June, 2021 (reduced rate benefit shall remain effective upto 30^th September, 2021)

Disclaimer: The content of this document is for general information purpose only. TaxMarvel shall not accept any liability for decision taken based on the advice. You should carefully study the situation before taking any decision.

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About the Author

Rohit Kumar Singh

Founder - TaxMarvel Consulting Services LLP

Rohit is a CA, CS and CMA and Gold Medalist Law Graduate. He has also passed DISA (ICAI). Rohit is Founder of TaxMarvel Consulting Services LLP (a niche consulting firm engaged in providing GST Services to Corporates and SMEs) He was earlier head ofGST Business (GST Suvidha Provider) for Karvy Data Management Servic ... Read more

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