The Group of State Ministers is seen referring back the matter of taxing Covid-19 vaccine to the GST Council, while for other materials, including oxygen concentrators, PPE kits, etc., it is likely to suggest a uniform rate of 5 per cent and exemption for drugs to treat black fungus.
According to sources, the GoM met on Thursday and is likely to finalise its report by the day after. “Effort would be to ensure that end-user does not take a hit,” another source said.
The eight-member GoM, with Meghalaya Chief Minister Conrad Sangma as the Convenor, has to submit its report latest by June 8 to the Council, which will then take a final decision. The GoM was constituted as the GST Council, at its May 28 meeting, could not take a decision on the issue due to differences among the members.
No Congress FM
Even as the GoM met, a political row is brewing with Kerala Finance Minister KN Balagopal apparently protesting against the non-inclusion of a minister from a Congress-ruled State in the GoM. He said none of the FMs of the principal Opposition have found a place in the panel.
Balagopal’s move is seen as an attempt to counter what is being portrayed as an attempt by the Centre to divide the Opposition camp by not including a Congress FM in the panel. Along with the Left, the Congress has also been demanding zero tax rate for equipment and medicines for management of Covid 19.
Apart from Balagopal, Odisha Finance Minister Niranjan Pujari also demanded zero taxation on Covid-related products. Punjab Finance Minister Manpreet Singh Badal had also written to Union Finance Minister Nirmala Sitharaman saying that Covid products should be tax-free. Opposition-ruled States are pitching for full exemption for Covid relief materials.