New Delhi: COVID-19 medicines and instruments are being sold at a GST rate of five percent while other medicines are sold at a GST rate between five and 12 percent ever since the pandemic started, Union Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha on Monday. Chaudhary also said that 66 percent of government-sponsored health insurance schemes in the country are being run by the central government.
When the COVID-19 pandemic started, a decision was made for the sale of all medicines at the GST rate between 5 and 12 percent and the GST rate for COVID-19 related medicines and instruments has been reduced to five percent, he said during Question Hour. The minister said the GST rate for health insurance is 18 percent, which is as per international standards, and similar to what it was during pre-GST days in the country. He said senior citizens can avail of a tax rebate of up to Rs 1 lakh on health insurance policies.
Chaudhary said GST rates and exemptions on all services (including GST on the health insurance premium) are prescribed on recommendations of the GST Council which is a constitutional body comprising Union Finance Minister and ministers as nominated by respective state and union territory governments. At present, Goods and Services Tax (GST) on health insurance services is levied at the standard rate, i.e., 18 percent.
