Exempt GST on vaccine buy: Naveen Patnaik writes to FM Sitharaman

By Express News Service
BHUBANESWAR :  Chief Minister Naveen Patnaik on Thursday requested the Centre for exemption of GST on buy of Covid-19 vaccines and lengthen monetary help to the states from the cess and surcharges to create an equal platform to combat the pandemic.

 In a letter to the Union Finance Minister Nirmala Sitharaman, Naveen mentioned that the states have been requested to buy vaccines from their very own assets to cowl the 18 to 44 years age group. These purchases appeal to GST, making vaccines pricey for the states. This must be exempted utterly. It will cut back the associated fee for states and facilitate the drive in the direction of common vaccination, he acknowledged.

 In a video message to the individuals on Saturday, the Chief Minister had mentioned that the State authorities has positioned orders for vaccine doses for everybody within the age group of 18 to 44 years. Around two crore individuals within the age group will profit from the vaccination drive for which Rs 2,000 crore can be spent.

 The State authorities had positioned orders for 10.34 lakh doses of Covaxin from Bharat Biotech and 377 lakh doses of Covishield from Serum Institute of India on Sunday. While Covishield is priced at Rs 300 per dose for state authorities, Covaxin prices Rs 600 per dose. Covishield will price Rs 1,131 crore and Covaxin  Rs 62.04 crore.

The mixed buy price for the State authorities involves Rs 1,193.04 crore which can appeal to GST of Rs 59.69 crore on the fee of 5 per cent. The state authorities will get speedy reduction of round Rs 60 crore for these purchases if GST is waived.

Arguing for GST exemption, the Chief Minister mentioned it can be crucial that the states are supported in order that the complete nation fights as one. Additional assets raised by way of varied cess and surcharges on petrol, diesel and liquor, that are solely accessible to the Centre, must be suitably shared with state governments at this essential juncture. “This will strengthen our fight against the pandemic including the provision of vaccinations, free treatment, undertaking preventive measures and so on,” he acknowledged.