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Impact of GST on Medicines, Medical Devices, Check out the details


Impact of GST on Medicines, Medical Devices, Check out the details

The government said on Monday the goods and services tax (GST), scheduled to be rolled out from July 1, was set to benefit consumers, as the tax incidence on smartphones, medical devices and cement would come down.

The GST Council, comprising state finance ministers and headed by the Union finance minister, last week finalised the tax on most of the items and services.

At these rates, the present total tax incidence works out to more than 29 percent. If we include tax incidence on account of CST, octroi, entry tax, etc., the present total tax incidence would work out to more than 31 percent. As against this, the proposed GST rate for cement is 28 percent.

There will be lesser tax burden in case of Medicaments, including Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems also. Medicaments, in general, attract six percent central excise duty and five percent VAT.

Further, CST, octroi, entry tax, etc. are also applicable in general. At these rates, the present total tax incidence works out to more than 13 percent.

As against this, the proposed GST rate on medicines, including ayurvedic medicines, is 12 percent.

Similarly, Medical devices, including surgical instruments, in general attract six percent central excise duty and five percent VAT. Along with CST, octroi, entry tax, etc., the present total tax incidence on them works out to more than 13 percent. As against this, the proposed rate under GST is 12 percent.

However, exact formulation for the same is yet to be finalized.



Source: ANI
1 comment(s) on Impact of GST on Medicines, Medical Devices, Check out the details

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  1. user
    SURESH PATHAK May 26, 2017, 5:00 pm

    No details regarding GST available in this article . Its very vague.
    please try to gather more information so as to clear the cloud of GST over medicines of different categories