Vaccine policy change may end Centre's GST dispute with states
- 3 years ago
With PM Modi announcing a centralised vaccine procurement plan, a partial truce of sorts may happen in the GST council. The council, which is the supreme decision-making body on GST-related issues, was split down the middle over the current 5% GST on Covid-19 vaccines. Many non-BJP states have demanded that the jabs must be exempted from tax.
Their claim was that since most vaccines manufactured were being bought by the state governments and Centre and are going to be provided free to the citizens, the tax would accrue to the governments. They further argued that a minimum tax slab on vaccines would help the vaccine makers claim the input tax credit, which could mean a lower vaccine price.
However, the policy change came at a perfect moment as sources claim that some of the differences that led to the creation of the group remained unresolved. A member of the group told India Today TV, “States will be happy with the development. On the rest of the items, the report has been submitted and the council will take a call.”
Their claim was that since most vaccines manufactured were being bought by the state governments and Centre and are going to be provided free to the citizens, the tax would accrue to the governments. They further argued that a minimum tax slab on vaccines would help the vaccine makers claim the input tax credit, which could mean a lower vaccine price.
However, the policy change came at a perfect moment as sources claim that some of the differences that led to the creation of the group remained unresolved. A member of the group told India Today TV, “States will be happy with the development. On the rest of the items, the report has been submitted and the council will take a call.”