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GST rate for COVID-19 medicines pegged at 5% GST: govt

GST rate for COVID-19 medicines pegged at 5% GST: govt

COVID-19 medicines and instruments are being sold at a GST rate of five per cent while other medicines are sold at a GST rate between five and 12 per cent 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 per cent 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 sale of all medicines at the GST rate between 5 and 12 per cent and the GST rate for COVID-19 related medicines and instruments has been reduced to five per cent," he said during the 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 tax rebate of up to Rs 1 lakh on health insurance policies.

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