Import duties on raw materials for Covid test kits and APIs for Amphotericin B are being waived by the government.

Experts will explore important difficulties that the life sciences industry may encounter in 2021, as well as the efforts that will be required to overcome them, in this webinar co-hosted by Accenture and ETHealthworld.com. According to EY Tax Partner Abhishek Jain, this is a well-considered exemption offered by the Indian government to combat the Covid situation, and it is a step toward making the domestic sector self-sufficient while combating the epidemic.
“This is anticipated to further cut down the cost of such things in India, making them more affordable for the average man,” Shardul Amarchand Mangaldas & Co Partner Rajat Bose said.
Lower rates for 18 Covid-related items, including as hand sanitizer, pulse oximeters, BiPAP machines, testing kits, ambulances, and temperature check equipment, were announced last month by the Finance Ministry’s Revenue Department. These reduced rates will be in effect until September 30, 2021. GST on the medication Covid-19 Black fungus medication and tocilizumab Amphotericin B was lowered from 5 percent to ‘nil.’
The rate of Remdesivir and anti-coagulants such Heparin has been reduced from 12% to 5%. The GST rate for ambulances has been reduced from 28 percent to 12 percent. Medical grade oxygen, oxygen concentrators (including personal importation), ventilators, BiPAP machines, and high flow nasal cannula (HFNC) devices now have a 5% tax rate instead of the previous 12%.
In addition, the duty on Covid testing kits and pulse oximeters (including personal imports) has been reduced from 12 percent to 5%. Hand sanitizers, temperature check devices, and gas/electric furnaces for crematoriums will all be taxed at a lower rate of 5%, down from 18% previously.
With the government preparing for a third wave of Covid, which experts predict is on the way, it’s not unexpected that the government has proactively abolished customs tax on raw materials for Covid testing kits, according to Mahesh Jaising, Partner, Deloitte India.
Covid test kits are subject to a 5% GST rate (until September 30), and this exemption will help producers and the general public save money.

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