BHUBANESWAR: With the GST council agreeing to consider the demand of the state government to reduce rates on several Covid-related essentials like drugs, ventilators, testing kits, officials said it would help in strengthening the fight against the pandemic.
While finance minister Niranjan Pujari refused to comment anything on developments in the GST council meeting, a senior finance department official said many states including Odisha demanded reduction of rates on Covid essentials.
“One of our major demands was to waive GST on Covid vaccines.
Since the Centre has announced to supply vaccines to the state, there is no point in raising the demand.
We had demanded to reduce tax on other GST equipment and consumables in Saturday’s meeting as well, which the council has agreed to consider.
We appreciate the decision,” said a senior finance department official, who attended the virtual meeting.
“With the state government procuring large volume of Covid essentials and consumables to strengthen its fight against the pandemic, reduction in GST rates will ease the burden on common people and also on the states procuring these to deal with the unprecedented healthcare crisis,” the official added.
Earlier, chief minister Naveen Patnaik had sought the intervention of the Union finance minister for exemption of GST on the purchase of Covid-19 vaccines by states.
Naveen had earlier demanded that the states should be supported financially so that the entire country can fight as one.
While the chief minister, in his letter to the Union finance minister on May 6, had demanded that additional resources raised through various cess and surcharges on petrol, diesel and liquor, which are exclusively available to the Union government, should be shared with the states in view of the ensuing Covid crisis, no discussion was held in the council in this regard, said an official.