The Chhattisgarh government has ordered 90,000 remdesivir injections from Mylan Laboratories, worth Rs 14.11 crore.
Amid the second wave of COVID-19 infections in the country, states have asked for an urgent meeting of the Goods and Services Tax (GST) Council, which had last met six months ago.
States are demanding GST exemption of crucial drugs and equipment used in COVID-19 treatment, such as remdesivir, medical grade oxygen used in oxygen cylinders, and related supplements, Business Standard reported.
These goods currently attract 12 percent GST, the report said. The Council had previously met on October 12, 2020.
States also want to discuss extension of the compensation period under the GST regime, beyond July 2022, the report said.
Other subjects that might be discussed include rationalisation of GST rate slabs, correction of inverted duty on certain items and inclusion of petroleum products, the report added.
Also read: Maharashtra CM Uddhav Thackeray asks for GST returns of March and April to be extended by 3 months
Over the past few days, India has been recording more than 2 lakh new COVID-19 cases a day. This has created a spike in hospitalisations, and a demand for remdesivir and oxygen cylinders.
Chhattisgarh health minister, TS Singh Deo told Business Standard that the state will write to the Centre regarding exemption on Remdesivir, and related supplements from GST.
“We are demanding a GST exemption on Remdesivir and some other items. But, the GST Council needs to meet for that. It should certainly have had a virtual meeting,” Deo told the publication.
Deo said the Chhattisgarh government has ordered 90,000 remdesivir injections from Mylan Laboratories, worth Rs 14.11 crore.
Punjab finance minister Manpreet Singh Badal said there is a need to discuss GST compensation to states, due to economic uncertainty.
“Rules require the GST Council to meet once in a quarter. This is the time to repair the GST regime. Unless it is done in the formative stages, that is, less than five years, it will not get repaired. We need to discuss the GST compensation extension, but first we need to meet,” Badal was quoted as saying.
