Tamil Nadu for zero GST on vaccines, drugs

Tamil Nadu on Friday urged the Goods and Services Tax (GST) Council to levy a zero rate on COVID-19 vaccines, Remdesivir, Tocilizumab and other essentials purchased by the State government and agencie

Tamil Nadu on Friday urged the Goods and Services Tax (GST) Council to levy a zero rate on COVID-19 vaccines, Remdesivir, Tocilizumab and other essentials purchased by the State government and agencies at least for a temporary period. In his maiden speech at the 43rd GST Council meeting held virtually, Finance Minister Palanivel Thiaga Rajan said, “This will ensure that the cost of these essential items is reduced significantly, without the suppliers having to absorb any reversal of input tax credit. I am confident that these legal issues [in facilitating zero rating] can be overcome through legislation or ordinance once we reach a consensus.” On the meeting agenda, he said the State expected nothing more than a marginal growth at the best and a significant negative growth at the worst. He requested the GST Council to consider making arrangements for fully compensating the States for the gap arising during 2021-22 between the protected revenue and the actual expected revenue.