Rates were slashed due to states' stand

THIRUVANANTHAPURAM: Finance Minister KN Balagopal said the Centre's decision not to exempt drugs, including heparin, was disappointing. He was speaking to the media after the GST Council meeting.

Balagopal said that Kerala was one of the first states to approach the Centre with the demand to reduce GST rates on products associated with dealing with the Covid pandemic. He said that the reduction in GST on Covid drugs and medical supplies was because of the concerted stand of the states.

"Though the demand for zero GST rate (on Covid items) was not met, we were able to prevail upon the need for reduction of rates which has happened. Pulse oximeter carried 12 per GST and it has been reduced to 5 per cent. Similarly, the GST on sanitisers has been slashed to 5 per cent from 18 per cent, while the rate for oxygen concentrators has been reduced from 18 per cent to 12 per cent. Also, the GST on ambulance has been reduced to 12 per cent from 28 per cent," Balagopal said.

However, the minister said that the GST on vaccines has not been reduced as it was said that 75 per cent of the vaccines are being provided by the Centre.

"What happened today is the result of the recent meeting of the group of ministers on GST. Overall, the efforts appear to have paid off," added the 57-year-old first-time legislator.