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IDMA urges CBIC to extend existing concessional GST rates on Covid-19 drugs for six months
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Laxmi Yadav, Mumbai
January 17 , 2022
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Amid rising cases of Covid and its new variant Omicron in the country, Indian Drug Manufacturers’ Association (IDMA) has urged the Central Board of Indirect Taxes and Customs (CBIC) to extend existing concessional GST rates on certain Covid-19 treatment drugs for a further period of six months.
The CBIC exempted GST on specified medicines used in Covid-19, up to December 31, 2021 to implement recommendations made by the GST Council in its 45th meeting held on September 17, 2021.
The GST duty on remdesivir injection was 5 per cent and was extended till December 31. Covid-19 lifesaving drugs namely amphotericin B, tocilizumab enjoyed extension of GST exemption.
Even few more Covid-19 drugs like itolizumab, posaconazole, infliximab, favipiravir, casirivimab, imdevimab, bamlanivimab, etesevimab and 2-deoxy-D-glucose received reduction of GST rate to 5 per cent.
GST has been exempted on muscular atrophy drugs like zolgensma and viltepso, which cost crores of rupees. The Council also lowered the GST rate from 12 per cent to 5 per cent on cancer drugs.
The Council had reduced the GST rates on Covid drugs in its 44th meeting in June, 2021 till September 30, 2021, which was later extended in the 45th GST Council meeting up to December 31, 2021.
However, the 45th GST Council meeting decided not to give the same benefit to medical equipment. The concessional regime for certain medical equipment ended on September 30.
The 46th GST Council meeting held on December 31, 2021, deviating from its earlier stand did not discuss Omicron or extension of concessional GST rates on Covid treatment drugs.
Taking exception to this, IDMA on January 7, 2022 submitted a representation to Vivek Johri, chairman, CBIC appealing to him to extend the existing concessional GST rates on certain Covid-19 treatment drugs for a further period of six months in the weak of surge in cases of Covid-19 and its variant Omicron across the country which has created a situation of uncertainty and anxiety.
Besides CBIC, the industry body has also submitted representation to department of pharmaceutical secretary s Aparna and National Pharmaceutical Pricing Authority chairperson Kamlesh Kumar Pant in this regard.
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