Site icon Yes GST

Government Unlikely To Exempt Masks, Ventilators, PPEs From GST. Here’s Why

 

The government is unlikely to exempt on medical items such as ventilators, PPEs, masks, test kits and sanitisers from goods and services tax as it would lead to blocked input tax credit, increasing the cost of manufacturing and increase the price for consumers. There have been demands from certain sections to exempt GST on certain items like ventilators, personal protective equipment, masks, test kits and sanitisers that are essential items for treatment of Covid-19 saying that GST exemption on these items would lead to reduction in prices.

Currently, GST rate on ventilator is 12 percent; on mask, it is 5 percent; on test kits, it is 12 percent; on sanitiser, it is 18 percent; and on PPE, it is 5 percent (costing up to Rs 1,000) and 12 percent (if the cost is more that Rs 1,000 per piece).

Sources said GST exemption on such items would lead to blocked input tax credit, thereby increasing the cost of manufacturing and a higher price

Read more at: https://www.bloombergquint.com/gst/govt-unlikely-to-exempt-gst-on-masks-ventilators-ppes-as-it-would-lead-to-blocking-of-itc

Exit mobile version