1ºDear all media
Previous year entire planet has witnessed nightmare year of 2020 since the WHO declared corona virus (Covid-19) as a pandemic on 11.03.2020. India declared complete lockdown of more than 70 days, even today we are battling our way out of Covid-19 Second wave pandemic as well as swelling in covid19 survivors signs of Black Fungus, as number of cases are not flattening/coming down. Due to risk of Covid-19 in India many business houses are either completely shut or working with lower capacity with limited manpower & staffs, due to further restriction imposed by the States or Local Unexpected fall out of pandemic & continuous lockdowns have not only resulted into squeeze in businesses but, on individual level, there has been pain of lost of jobs, acute financial problems, loneliness, illness, fatigue, mental & emotional stress for many victims of virus and their families.
Tax exemption vaccines, covid19/Black Fungus drugs and oxygen?
In the present scenario, a 5% GST is levied on domestic supplies and commercial imports of vaccines; COVID drugs, Black Fungus drugs and oxygen concentrators attract 12% GST. But there is another mechanism in the GST law where the output can be taxed at 0% and still the input taxes are not denied credit. This system is called zero rating, which is prevalent in European Union (EU) and other advanced countries that have GST. The zero rating is typically used for very essential goods and services like life-saving drugs. This is the route the GST council should now adopt to concede the most legitimate requests for tax exemption for few months not permanently on next 43rd GST Council meeting via video conferencing at 11 AM in New Delhi on 28th May 2021.With this method, the manufacturers will avail the credit on all inputs and use the same against tax payment on other outputs subject to tax. If they do not have any such, the accumulated credit will be refunded periodically. No manufacturer will lose any money and the customers will get these life-saving items at a lower price.