NEW DELHI: GST on Covid-19 Vaccine & Vaccine Prices Capped: The Goods and Service Tax (GST) Council on Saturday in its 44th meeting has agreed to stick to the 5% tax rate on Covid-19 vaccines. Meanwhile, the council has also approved rate reduction for the Remdesivir vaccine from 12% to 5%; while, no tax will be charged on black fungus or mucormycosis medicines such as Tocilizumab and Amphotericin.
Among the significant tax reductions, the GST Council has cut the tax rate from 12% to 5% on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines, and high flow nasal cannula (HFNC) devices, finance minister Sitharaman announced.
On the other hand, pulse oximeters, hand sanitisers, temperature check equipment and ambulances too will attract lower 5 per cent tax, the finance minister added. Earlier the government of India instructed private vaccination centers to not charge more than Rs 780 for Covishield, Rs 1,410 for Covaxin, and Rs. 1,145 for Sputnik V jabs. Private hospitals can charge up to Rs 150 on service charges and the state governments will monitor the prices being charged.
| COVID Vaccine Name | COVID-19 Vaccine Price(in Rs) |
Covishield | 780 |
Covaxin | 1410 |
Sputnik V | 1,145 |
"The price of vaccine doses for private hospitals would be declared by each vaccine manufacturer, and any subsequent changes would be notified in advance. The private hospitals may charge up to a maximum of Rupees 150 per dose as service charges. State Governments may monitor the price being so charged," the order stated.
The centre also said that steps are being taken to put the required validations by the Co-WIN portal to make sure that prices declared by several private COVID-19 vaccination centres do not exceed that mandated by the government. In its order, the centre also highlighted that the prices declared by private COVID-19 vaccination centres need to be reset to the maximum value instructed by the government.
Addressing the nation, PM Modi also made it clear that the states will be provided with these vaccine doses free of cost from the Central government. "The Government of India will provide free vaccine to the states from Monday, June 21, in every state for all citizens above the age of 18 years," Modi said.
Also Read: Govt Fixes Covid Vaccine Rates in Private Hospitals, Rs 780 for Covishield, Rs 1,410 for Covaxin