Exempt CGST on specified medicines used in COVID-19, up to 31st December, 2021

Last updated: 04 October 2021

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The Indian government has announced an exemption from Central Goods and Services Tax (CGST) on certain medicines used in the treatment of COVID-19. This exemption applies to specific drugs listed in the notification, such as Tocilizumab, Amphotericin B, Remdesivir, and others. The relief is effective from October 1, 2021, and will remain in place until December 31, 2021.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 12/2021-Union Territory Tax (Rate)

New Delhi, the 30^th September, 2021

G.S.R. 707(E).– In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) (hereafter in this notification referred to as “the said Act”), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the goods specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as the case may be, as specified in the corresponding entry in column (2) of the said Table, from so much of the Union territory tax leviable thereon under section 7 of the said Act, as is in excess of the amount calculated at the rate as specified in corresponding entry in column (4) of the aforesaid Table, namely:-

Table

Sl. No.	Chapter, Heading, Sub- heading or Tariff item	Description of Goods	Rate
(1)	(2)	(3)	(4)
1	30	Tocilizumab	Nil
2	30	Amphotericin B	Nil
3	30	Remdesivir	2.5%
4	30	Heparin(anti-coagulant)	2.5%
5	30	Itolizumab	2.5%
6	30	Posaconazole,	2.5%
7	30	Infliximab	2.5%
8	30	Bamlanivimab&Etesevimab	2.5%
9	30	Casirivimab&Imdevimab	2.5%
10	30	2-Deoxy-D-Glucose	2.5%
11	30	Favipiravir	2.5%

2. This notification shall come into force from the 1^st day of October, 2021 and remain in force up to and inclusive of the 31^st December, 2021.

[F. No. 190354/206/2021-TRU]

(Rajeev Ranjan)

Under Secretary to the Government of India

FAQ :

The notification provides an exemption from Union Territory tax (CGST) on specified medicines used for COVID-19 treatment.

Medicines such as Tocilizumab, Amphotericin B, Remdesivir, Heparin, Itolizumab, Posaconazole, Infliximab, Bamlanivimab & Etesevimab, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose, and Favipiravir are covered.

The exemption is valid from October 1, 2021, up to and including December 31, 2021.

No, only the specific medicines listed in the notification are exempt from CGST.

For medicines like Remdesivir, Heparin, Itolizumab, Posaconazole, Infliximab, Bamlanivimab & Etesevimab, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose, and Favipiravir, the CGST rate is 2.5%.

Notification No : 12/2021-Union Territory Tax (Rate)
Source : https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-12-2021-utgst-rate.pdf

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