GST on vaccine against States’ interest: Balagopal

Kerala Finance Minister K. N. Balagopal  

The decision of the Centre not to waive the 5% Goods and Services Tax (GST) on COVID vaccine is against the interest of States, Finance Minister K.N. Balagopal has said.

The Centre’s stance was that it would buy 75% of the vaccines from manufacturers and would remit the GST on it. The revenue on that would be shared at 70% with the States, the Finance Minister said here after the online meeting of the GST Council on Saturday. “Still, we are of the view that the 5% GST for COVID vaccine should be avoided,” he said.

Mr. Balagopal said the State was disappointed over the Centre’s stance of not avoiding GST for anti-coagulants such as Heparin and for not waiving the GST for portable hospital units.

It was only after the pressure exerted by the States that Union Finance Minister Nirmala Sitharaman agreed to extend the tax concessions announced by her from August to September.

The Finance Minister said Kerala had suggested waiving of tax for COVID vaccine and COVID supplies or 0.1 GST. Citing technicalities over input tax, he said the Centre rejected the demand.

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Printable version | Jul 31, 2021 3:02:44 AM |

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