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44th GST Council Meeting: Highlights, Latest News and Updates

By AJ

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Updated on: Sep 6th, 2021

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6 min read

The 44th Goods and Services Tax (GST) Council meeting was held on 12th June 2021. The GST Council had previously met up on 28th May 2021. During the press conference that followed the meeting, the Finance Minister Smt. Nirmala Sitaraman announced that a Group of Ministers (GoM) would be formed to discuss the need for further reductions and decide on any new exemptions for COVID essentials and treatment of Black Fungus.

The 44th GST Council meeting was chaired by the Union Finance Minister. The Union Minister of State for Finance and Corporate Affairs Shri Anurag Thakur, and the finance ministers of the states and Union Territories (UTs), and other senior officers of both, the Ministry of Finance and the states and UTs were present at the meeting.

Latest updates on GST Council meeting

24th June 2022
The 47th GST Council meeting was held on the 28th and 29th of June 2022 in Chandigarh. Union FM Nirmala Sitharaman chaired this meeting and made recommendations to revise rates for revenue augmentation and correction of inversion while pruning the GST exemption list. Compliance relief was granted to e-commerce suppliers and composition taxpayers.

29th December 2021
The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles.

1st September 2021
45th GST Council meeting was held on 17th September 2021. Tax concessions on COVID-19 essentials got extended, Matter on GST compensation to states was taken up, correction of inverted tax structure, etc were on the agenda.

28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.

Highlights of the 44th GST Council Meeting

The 44th GST Council Meeting took a decision to reduce the GST rates on the drugs used to treat COVID-19 and other related medical supplies. These rate reductions or exemptions will remain in force only up to 30th September 2021. The new rates shall apply to newly manufactured stock. Here are the proposed new GST rates:

Medicines required for COVID-19 and Black Fungus treatment:

ItemsOld rateProposed rate
Tocilizumab5%Nil
Amphotericin-B5%Nil
Remedesivir12%5%
Anti-coagulants like Heparin12%5%
Any other drug (recommended by the Ministry of Health and Family Welfare (MoHFW) and the Dept. of Pharma (DoP) for COVID-19 treatment)Existing rate5%

Medical equipment required for COVID-19 treatment:

ItemsOld rateProposed rate
Medical Grade Oxygen12%5%
Oxygen concentrators/ generators (which include personal imports)12%5%
Ventilators and ventilator masks/ cannula/ helmets12%5%
BiPaP machine12%5%
High flow nasal cannula device12%5%
Pulse oximeters12%5%

COVID-19 testing kits and items utilised for the prevention of COVID-19

ItemsOld rateProposed rate
COVID-19 testing kits12%5%
Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH12%5%
Hand sanitiser18%5%
Temperature checking equipment18%5%

Others:

ItemsOld rateProposed rate
Gas/electric/other furnaces for crematoriums, including their installation, etc18%5%
Ambulances28%12%

Expectations from the 44th GST Council meeting

The GoM was formed on 29th May 2021 to evaluate the need for reducing GST on COVID essentials, and it submitted the report to the Finance Ministry by 8th June 2021. The council is meeting to discuss specifically the report submitted by the GoM. The single point agenda of the 44th GST Council meeting is to consider the GoM report and decide whether to reduce the GST rate on COVID essentials or not.

The sources say the GoM has proposed to keep the existing 5% GST on COVID vaccines and proposed the following new GST rates on COVID essentials:

Medicines required for COVID treatment:

ItemsCurrent rateProposed rate
Tocilizumab5%Nil
Amphotericin-B5%Nil
Remedesivir12%5%
Anti-coagulants12%5%
Medical O212%5%

Also, any other drug prescribed by the Health Ministry for COVID treatment shall be reduced to a 5% GST rate.

Medical equipment required for COVID treatment:

ItemsCurrent rateProposed rate
Oxygen concentrator12%5%
Ventilators and ventilator masks12%5%
BipAp machine12%5%
HF nasal canula device12%5%
Pulse oximeters12%5%

COVID testing kits and items utilised for prevention of COVID-19:

ItemsCurrent rateProposed rate
COVID testing kits12%5%
Genome sequencing kits12%No change
RT-PCR machines18%No change
PPE kits5%No change
N95, surgical and other triple-layer masks5%No change
Hand sanitiser18%5%
Temperature equipment18%12%

Other necessities:

ItemsCurrent rateProposed rate
Crematorium furnaces18%12%
Portable hospital units18%No change
Ambulances28%No change

The current and expected GST exemptions and rate reductions are expected to be valid until 31st August 2021.

About the Author

DVSR Anjaneyulu, known by the name AJ, I've got a vast experience in accounting, finance, taxes and audit. I'm always keen to simplify laws for the readers and learn about the Indian finance ecosystem. I also love listening to music, travelling, and, most importantly, conversing with people to better understand the world.. Read more

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Quick Summary

The 44th and 47th GST Council meetings discussed rate revisions for COVID essentials and treatments. 46th meeting deferred textile GST rate hike. 45th meeting extended tax concessions. Highlighted changes include GST rate reductions on drugs and medical supplies until 30th September 2021.

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