SHILLONG, May 29: Meghalaya Chief Minister, Conrad Sangma has informed that the Union Finance Minister has agreed to form a Group of Ministers to decide on the rates of GST on COVID-related items.
It was decided in the eight-hour-long GST Council meeting which was held on Friday.
Speaking to media persons here on Saturday about the meeting, Chief Minister, Conrad Sangma said that the committee which submitted the reports to the council had suggested a certain reduction in rates in some COVID items like vaccines, ventilators, hand sanitizers etc.
It is said that the GST rates on ventilator and vaccines have been kept at 18 percent and there were discussions that the GST rate on all these products should be brought down. However, Chief Minister informed that it was not possible since the law does not allow it
Informing that the reduction proposed now is more than 70 percent, Sangma stressed on the need to strike a balance since the states need taxes and funds to fight COVID-19 and there were different opinions
Taking note of the views, the Finance Minister has set up a Group of Ministers to decide on the practical way to move forward and the report of the group of Ministers is being awaited.
It was also informed that another meeting of the GST council will be held in 10-12 days
Chief Minister also informed that most of the products related to COVID-19 pandemic are bought by the Government itself so, it will not affect public at large.
Citing an example, he said that there was a demand that the GST rate on vaccine should be brought to zero percent and whether it is 5 per cent or 0 percent, there will be no impact on end users as vaccines are being given to people for free by the government.