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44th GST Council Meeting: Highlights, Latest News and Updates
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:
| Items | Old rate | Proposed rate |
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants like Heparin | 12% | 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 rate | 5% |
Medical equipment required for COVID-19 treatment:
| Items | Old rate | Proposed rate |
| Medical Grade Oxygen | 12% | 5% |
| Oxygen concentrators/ generators (which include personal imports) | 12% | 5% |
| Ventilators and ventilator masks/ cannula/ helmets | 12% | 5% |
| BiPaP machine | 12% | 5% |
| High flow nasal cannula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID-19 testing kits and items utilised for the prevention of COVID-19
| Items | Old rate | Proposed rate |
| COVID-19 testing kits | 12% | 5% |
| Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| Hand sanitiser | 18% | 5% |
| Temperature checking equipment | 18% | 5% |
Others:
| Items | Old rate | Proposed rate |
| Gas/electric/other furnaces for crematoriums, including their installation, etc | 18% | 5% |
| Ambulances | 28% | 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:
| Items | Current rate | Proposed rate |
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants | 12% | 5% |
| Medical O2 | 12% | 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:
| Items | Current rate | Proposed rate |
| Oxygen concentrator | 12% | 5% |
| Ventilators and ventilator masks | 12% | 5% |
| BipAp machine | 12% | 5% |
| HF nasal canula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID testing kits and items utilised for prevention of COVID-19:
| Items | Current rate | Proposed rate |
| COVID testing kits | 12% | 5% |
| Genome sequencing kits | 12% | No change |
| RT-PCR machines | 18% | No change |
| PPE kits | 5% | No change |
| N95, surgical and other triple-layer masks | 5% | No change |
| Hand sanitiser | 18% | 5% |
| Temperature equipment | 18% | 12% |
Other necessities:
| Items | Current rate | Proposed rate |
| Crematorium furnaces | 18% | 12% |
| Portable hospital units | 18% | No change |
| Ambulances | 28% | No change |
The current and expected GST exemptions and rate reductions are expected to be valid until 31st August 2021.
About the Author
AJ
As a qualified Chartered Accountant with extensive expertise in accounting, finance, taxes, and audit, I specialise in simplifying complex regulations for a broader audience. Well-versed in tax laws across India and the GCC region, I have a keen interest in the evolving finance ecosystem. Passionate about learning, I enjoy engaging in conversations, exploring new cultures through travel, and unwinding with music.. Read more
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