Tax on Covid jabs: PM Modi's vaccine policy change may end dispute with states
India TodayPrime Minister Narendra Modi’s address to the nation on Monday may bring a partial truce of sorts in the GST Council. However, the GST Council would have to take a final call on the tax applicable on the remaining 25% vaccines that will be delivered by private hospitals, said sources in the Union Health Ministry. As differences rose in the GST Council meeting on May 28, a group of finance ministers of 8 states was set up to sort out the differences between the Centre and states over the tax slabs for Covid-19 vaccines and other relief material like oxygen concentrators, PPE kits etc. Taxing other Covid relief materials For other relief materials, including oxygen concentrators, PPE kits etc, sources say that the group of ministers has gone for the uniform rate of 5% GST. One of the arguments for no change in rate on vaccines is that almost entire procurement of vaccine is carried out by the Centre and states who are providing jabs free of cost.