GST on PPE kit

GST on PPE kit
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Quick Summary
Currently, the Goods and Services Tax (GST) on PPE kits varies based on their price. Kits costing under £1,000 are charged at 5% GST, while those above £1,000 attract a 12% GST rate. There are ongoing discussions and recommendations to exempt essential COVID-19 fighting equipment like PPE kits entirely. Such an exemption could lower production costs by allowing manufacturers to claim Input Tax Credit (ITC) on raw materials and removing GST from the final product.

GST on PPE is charged at the rate of 5% if the cost of the product is below Rs. 1,000 and 12% if the cost of the product is above Rs. 1,000.

As on date, PPE Kit has two GST Rates, @ 5% if Price per Piece is Below Rs. 1000/- and @ 12% if Price per Piece is Above Rs. 1000/-

But there are certain recommendations to Exempt such equipments that are essential to fight against Covid-19 so that their Cost of Production would get reduced by claiming ITC on the items used for their manufacturing and by exempting the final output.
So in future it might get Exempted. But as of now it attracts the above two rates.

Thanks
Below 1000/- GST rate is 5% & Above 1000/- GST rate is 12%

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