Opposition slams Centre for delay in cutting GST on Covid-19 vaccine

Punjab FM accused the Modi government of “faking revenues” and reducing the proposed compensation to states by nearly 33 per cent

Opposition-ruled states on Friday slammed the Modi government for delaying a decision on levying GST on vaccines and medical equipment required to deal with the pandemic.

“GST Covid-19 relief put on hold for lack of compassion by the Union Government,” Punjab Finance Minister Manpreet Singh Badal said after the GST Council meeting.

Badal also accused the Modi government of “faking revenues” and reducing the proposed compensation to states by nearly 33 per cent.

Also read — GST Council leaves tax rate on Covid vaccines unchanged

“GST compensation needs a primary maths teacher; Central Government reduces proposed compensation by nearly 33 per cent amidst faking revenues,” Badal said.

Delhi Deputy Chief Minister Manish Sisodia claimed that many finance ministers of BJP-ruled states strongly protested the proposal put up by him to make essential coronavirus supplies tax-free.

“Put up a proposal before GST Council to make Covid-19 vaccines, oxygen cylinders, concentrators, PPE kits, sanitisers, masks, testing kits etc tax-free,” Sisodia, who is also the Delhi finance minister, tweeted.

“Punjab, West Bengal, Kerala and many other states also did the same. However, finance ministers from the BJP strongly protested against it,” Sisodia said.

Key takeaways from the 43rd GST Council meet

Finance Minister Nirmala Sitharaman admitted that there were “differing views” and she has suggested setting up a Group of Ministers to examine the issue and make recommendations.

Revenue Secretary Tarun Bajaj said questions were raised in the meeting on the actual beneficiaries of the GST waivers on medical equipment and vaccines.

Covid-19 vaccines are being purchased by the Centre and states and GST on it is coming back to them since they are giving vaccines free of cost. “But the question arose whether lowering GST will benefit private hospitals or the end-user, the citizens. A similar question was raised whether lowering GST on ventilators will benefit end-users (the patients) or only benefit private hospitals considering government hospitals who purchase the ventilators get back the GST purchased on them,” Bajaj said.