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Many equipment used for carrying Covid shots to attract 18% GST

Many equipment used for carrying Covid shots to attract 18% GST

A tax ruling has said that unless products and equipment are specifically manufactured for the sole purpose of Covid vaccination, they should attract additional taxation. Tax experts say this is set to increase Goods and Services Tax (GST) on equipment used for Covid vaccination programmes.

The ruling said that manufacturing of cold chain equipment, which is used in vaccination and immunisation programmes for transporting vaccines, specimens, and blood samples, should attract 18% GST, the Uttar Pradesh Authority for Advance Ruling (AAR) said.

"The ruling places reliance on the composition of the product over its use or consumption by the dealer and the customer.

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