To provide some relief to common man amid the second wave of coronavirus pandemic, finance minister Nirmala Sitharaman on Saturday announced tax relief on various Covid-19 medicines and equipment. However, the Goods and Services Tax on Covid-19 vaccine to remain same at 5 percent.
Explaining the rationale behind this, Sitharaman said, “5% GST on vaccines will stay. The Centre will buy the 75% vaccine as announced and will pay its GST too. But 70% of income from GST will be shared with the states.”