New Delhi: The GST council under the central government will take a decision on waiving GST on COVID-19 vaccine in the meeting on Friday. It is reported that the council may avoid tax on other products used for COVID prevention.
At present, 5 percent tax is imposed on the vaccine. Various state governments also appealed to the centre to completely waive GST on the vaccine.
At the same time, the proposal to slash the GST rate by 0.1 percent is also under the consideration of the union ministry of finance.
The union ministry of finance will discuss the advantages and disadvantages of these proposals at the GST council meeting on Friday.
Most of the states are facing a financial crunch due to the purchase of vaccine. Uttar Pradesh, Maharashtra, Telangana and Odisha governments have informed that they will cut their capital expenditure by 25 to 30 per cent.
But the financial experts alerted that cutting capital expenditure will not benefit the states.