Lok Sabha Question No. 18 (UNSTARRED), answered on 2021-07-19
Subject: Taxes on Medical Equipments
Ministry: FINANCE
Asked by: Nitesh Ganga Deb

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO.18

## TO BE ANSWERED ON MONDAY THE 19 TH   JULY, 2021 ASHADHA 28, 1943 (SAKA)

## TAXES ON MEDICAL EQUIPMENTS

## 18. SHRI NITESH GANGA DEB:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  waived  taxes  from  articles  and  medical equipments used for corona treatments in the country; and
- (b) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE SH. PANKAJ CHOUDHARY

(a): In order to ensure the availability and affordability of goods being used for Covid-19  relief  and  management,  the  Government  has  for  specified  period provided the following indirect exemptions/concessions on such items:-

- (i)  Customs Duties has been exempted on (a) medicines such as Remdesivir injection,  Remdesivir  API,  Amphotericin  B  and  specified  inputs  for  their manufacturing  (b)  oxygen  and  oxygen  related  equipment  (c)  Covid-19 Vaccines (d) specified inflammatory diagnostic kits, etc.
- (ii)  Specified Covid relief items have also been exempted from payment of IGST when imported for donation to Central Government, State Government or any relief agency, entity or statutory body for free distribution.
- (iii)   GST  rate  has  been  reduced  on  specified  goods  like  Covid-19  related medicines,  oxygen,  oxygen  related  equipment,  specified  Covid-19  testing kits, Pulse oximeters, hand sanitizers, temperature check equipment, Gas/electric furnace for crematorium and ambulances.

(b): The  list  of  Covid-19  relief  goods  on  which  GST/Customs  duty  has  been reduced is enclosed.

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## A. Exemption/ Reduction in GST and IGST (on imports) on COVID-19 relief goods

| S. No.                                                             | Description                                                              | From                                                               | To                                                                 |
|--------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| A. Medicines                                                       | A. Medicines                                                             | A. Medicines                                                       | A. Medicines                                                       |
| 1.                                                                 | Tocilizumab                                                              | 5%                                                                 | Nil                                                                |
| 2.                                                                 | Amphotericin B                                                           | 5%                                                                 | Nil                                                                |
| 3.                                                                 | Anti-Coagulants like Heparin                                             | 12%                                                                | 5%                                                                 |
| 4.                                                                 | Remdesivir                                                               | 12%                                                                | 5%                                                                 |
| B. Oxygen, Oxygen generation equipment and related medical devices | B. Oxygen, Oxygen generation equipment and related medical devices       | B. Oxygen, Oxygen generation equipment and related medical devices | B. Oxygen, Oxygen generation equipment and related medical devices |
| 1.                                                                 | Medica lGrade Oxygen                                                     | 12%                                                                | 5%                                                                 |
| 2.                                                                 | Oxygen Concentrator/Generator, including personalimports thereof         | 12%                                                                | 5%                                                                 |
| 3.                                                                 | Ventilators                                                              | 12%                                                                | 5%                                                                 |
| 4.                                                                 | Ventilator masks/canula/helmet                                           | 12%                                                                | 5%                                                                 |
| 5.                                                                 | BiPAP Machine                                                            | 12%                                                                | 5%                                                                 |
| 6.                                                                 | High flow nasal canula (HFNC)device                                      | 12%                                                                | 5%                                                                 |
| C. Testing Kits and Machines                                       | C. Testing Kits and Machines                                             | C. Testing Kits and Machines                                       | C. Testing Kits and Machines                                       |
| 1.                                                                 | Covid Testing Kits                                                       | 12%                                                                | 5%                                                                 |
| 2.                                                                 | SpecifiedInflammatoryDiagnosticKits,namelyD-Dimer,IL-6, Ferritin and LDH | 12%                                                                | 5%                                                                 |
| D. OtherCovid-19relatedreliefmaterial                              | D. OtherCovid-19relatedreliefmaterial                                    | D. OtherCovid-19relatedreliefmaterial                              | D. OtherCovid-19relatedreliefmaterial                              |
| 1.                                                                 | Pulse Oximeters, including personal imports thereof                      | 12%                                                                | 5%                                                                 |
| 2.                                                                 | Hand Sanitizer                                                           | 18%                                                                | 5%                                                                 |
| 3.                                                                 | Temperature check equipment                                              | 18%                                                                | 5%                                                                 |
| 4.                                                                 | Gas/Electric/otherfurnacesforcrematorium,includingtheirinstallation,etc. | 18%                                                                | 5%                                                                 |
| 5.                                                                 | Ambulances                                                               | 28%                                                                | 12%                                                                |

## B. Full Exemption from Customs Duty on import of COVID-19 relief goods

|   S.No. | Description of goods                                                                                                                                                                                                                                                                                         |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Remdesivir Active Pharmaceutical Ingredients (API)                                                                                                                                                                                                                                                           |
|       2 | Beta Cyclodextrin (SBEBCD) used in manufacture of Remdesivir, subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.                                                                                            |
|       3 | Injection Remdesivir.                                                                                                                                                                                                                                                                                        |
|       4 | Inflammatory Diagnostic (marker) kits, namely- IL6, D-Dimer, CRP(C-Reactive Protein), LDH (Lactate De-Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents                                                                                                                                    |
|       5 | Medical Oxygen                                                                                                                                                                                                                                                                                               |
|       6 | Oxygen concentrator including flow meter, regulator, connectors and tubings.                                                                                                                                                                                                                                 |
|       7 | Vacuum Pressure Swing Absorption (VPSA) and Pressure Swing Absorption (PSA) oxygen plants, Cryogenic oxygen Air Separation Units (ASUs) producing liquid/gaseous oxygen.                                                                                                                                     |
|       8 | Oxygen canister.                                                                                                                                                                                                                                                                                             |
|       9 | Oxygen filling systems.                                                                                                                                                                                                                                                                                      |
|      10 | Oxygen storage tanks                                                                                                                                                                                                                                                                                         |
|      11 | Oxygen generator                                                                                                                                                                                                                                                                                             |
|      12 | ISO containers for Shipping Oxygen                                                                                                                                                                                                                                                                           |
|      13 | Cryogenic road transport tanks for Oxygen                                                                                                                                                                                                                                                                    |
|      14 | Oxygen cylinders including cryogenic cylinders and tanks                                                                                                                                                                                                                                                     |
|      15 | Parts of goods at S.No.6 to 14 above, used in the manufacture of equipment related to the production, transportation, distribution or storage of Oxygen, subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. |
|      16 | Any other device from which oxygen can be generated                                                                                                                                                                                                                                                          |
|      17 | Ventilators, including ventilator with compressors; all accessories and tubings; humidifiers; viral filters (should be able to function as high flow device and come with nasal canula).                                                                                                                     |
|      18 | High flow nasal canula device with all attachments; nasal canula for use with the device.                                                                                                                                                                                                                    |
|      19 | Helmets for use with non-invasive ventilation.                                                                                                                                                                                                                                                               |
|      20 | Non-invasive ventilation oronasal masks for ICU ventilators.                                                                                                                                                                                                                                                 |
|      21 | Non-invasive ventilation nasal masks for ICU ventilators.                                                                                                                                                                                                                                                    |
|      22 | COVID-19 vaccine                                                                                                                                                                                                                                                                                             |
|      23 | Amphotericin B                                                                                                                                                                                                                                                                                               |
|      24 | 6 specified API/ excipients for manufacturing Amphotericin B                                                                                                                                                                                                                                                 |
|      25 | Raw materials for manufacturing COVID test kits                                                                                                                                                                                                                                                              |

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