By Our Reporter
SHILLONG, May 29: The Centre has constituted an eight-member Group of Ministers (GoM) to decide the GST rates on COVID-related equipment and materials.
The decision to form the GoM was made at an meeting of the GST Council held on Friday.
Chief Minister, Conrad K Sangma, who heads the GoM, told reporters that a committee in its reports submitted to the GST Council earlier had suggested a certain reduction in the rates of some COVID items, including vaccines, ventilators, hand sanitisers etc.
The GST rates on ventilators and vaccines have been purportedly kept at 18 per cent. There were discussions on the reduction of GST rates on all these items but Sangma said it was not feasible since the law does not permit it.
Stating that the proposed reduction is more than 70 per cent, he stressed on the need to strike a balance since the states need taxes and funds to fight the pandemic. There were divergent opinions from the states.
Taking note of the views, Union Finance Minister Nirmala Sitharaman set up the GoM. It will examine the suggestions for slashing the rates of the COVID essentials and submit its report by June 8. The next meeting of the GST Council will be held in 10-12 days.
Sangma said most of the products related to the pandemic are bought by the government itself and hence, it will not affect the public at large.
Citing an example, he said there was a demand that the GST rate on vaccine be brought to zero per cent. However, whether it is 0 per cent or 5 per cent, there will be no impact on the end users as the vaccines are being given to people for free by the government.
The other members of the GoM are Gujarat Deputy CM Nitinbhai Patel, Maharashtra Deputy CM Ajit Pawar, Goa Transport Minister Mauvin Godinho and the Finance Ministers of Kerala, Odisha, Telangana and Uttar Pradesh.