GoM for retains 5% tax on Covid jabs; tax cut on PPEs, ventilators, sanitisers:

GoM for retains 5% tax on Covid jabs; tax cut on PPEs, ventilators, sanitisers:

Subject: Polity

Context: The Group of Ministers (GoM), constituted by the Goods and Service Tax (GST) Council last week to look into the tax rate on Covid vaccines and other equipment, has recommended retaining the GST rate on Covid-19 vaccine at 5 per cent, while suggesting tax cut on a slew of Covid-related items like ventilators, personal protective equipment (PPE) kit, among others, for three months.

The recommendations have been submitted to Finance Minister Nirmala Sitharaman on Thursday.

Concept:

GST Council:

• The GST council is the key decision-making body that will take all important decisions regarding the GST. The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
• The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
• It is a constitutional body (Article 279A) for making recommendations to the Union and State Government on issues related to Goods and Services Tax.
• Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as, the goods and services will be subject or exempted from the Goods and Services Tax.
• The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
• It is considered as a federal body where both the centre and the states get due representation.