GST On Covid Vaccine Union Finance Minister Nirmala Sitharaman explained the mathematics of GST to some opposition leaders, making it clear that removing GST would make the vaccine costlier rather than affordable. The consumers will bear the burden.
New Delhi, Jagran Bureau. Amidst the politics over the vaccine, some opposition leaders have started demanding the removal of five per cent GST on the vaccine. Congress leader Rahul Gandhi even went so far as to say that people are dying and the government is collecting taxes. Union Finance Minister Nirmala Sitharaman while explaining the mathematics of GST to the leaders making such demands made it clear that the removal of GST would make the vaccine costlier rather than affordable. The consumers will bear the burden.
Five percent GST on vaccine in the interest of both manufacturers and the public
There was no response from the government on Rahul’s political allegations two days ago, but in response to Mamata Banerjee’s request to the Prime Minister to remove tax on items related to the Corona epidemic, the Finance Minister cleared the situation. Granted that the GST on the vaccine actually makes it cheaper for consumers. Sitharaman said that if the GST levied on the vaccine is lifted, the vaccine manufacturers will not be able to use the input tax credit, which will increase the cost and they will increase the cost of the vaccine. The increased price will be recovered from the consumers.
The Finance Minister said, 70 percent of the GST goes to the states only.
With the introduction of GST, manufacturers can now use the input tax credit (ITC) and claim refund if the ITC is high. With the removal of GST, consumers will not get any benefit from it. He also clarified that the states get 70 percent of the GST from the vaccine. Half of the GST on the vaccine goes to the states and half to the center. Then it is distributed among the states from the center part also.
It is evident that the opposition has made the charge without understanding GST. The Finance Minister said that the Central Government has abolished customs duty and health cess on import of all goods related to corona relief and relieved them from IGST. Has been. These include all types of oxygen-related items, ramdesvir injections, ventilator-related items, and vaccines.
