Covid-19: GST On Ambulances Reduced From 28 Per Cent To 12 Per Cent

The 44th GST Council meeting held under the Chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman has decided to reduce rates on the specified items being used in Covid-19 relief and management. This was a long standing demand of states and various stakeholders of the health sector. In addition to reducing GST on life various drugs, Covid testing kits, medical oxygen, oxygen concentrators, ventilators and bi-pap machines the council has also decided to lower the prevaling GST rates on buying new Ambulances.

The 44th GST Council held under the Chairmanship of FM Smt @nsitharaman has decided to reduce the GST rates on the specified items being used in COVID-19 relief and management till 30th September, 2021.

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— Ministry of Finance (@FinMinIndia) June 12, 2021

Till now Ambulances were being sold with a GST rate of 28% which means they were considered as luxury items. However after the deadly second wave of the pandemic the new GST rates on Ambulances have been brought down to 12%. The council has decided to reduce the GST on above mentioned items till 30th September, 2021. Metros like Delhi and Mumbai faced a huge shortage of Ambulances when the wave was at its peak in the months of April and May.

However many are still not happy with the decision and say that GST on items being used for Covid-19 relief and management should be completely waived off instead bringing it down, including for Ambulances.

Also Read: Tata Motors Supplies 25 Winger Ambulances To The Health Department Of Gujarat

Some are also of the opinion that the September 30th, 2021, cut-off date for these reduced rates is not justified and the rates should be offered for a longer period of time. Any decision of extension of relief on GST rates will be taken during the GST council meeting to be held in the month of September.