Plea in SC seeks exemption of essential Covid drugs, equipment from GST

A plea has been filed in the Supreme Court for exemption from Goods and Service Tax (GST) to drugs like Remdesivir, Tocilizumab, Favipiravir, and medical equipment used for treatment of Covid-19.

It also sought direction for the lifting of GST on medical grade oxygen, oxygen concentrators, ventilators, Bipap Machines, control measures and supportive care for Covid-19 patients.

An NGO, 'Public Policy Advocates' through its founder Pritika Kumar filed the application in the pending suo motu case initiated by the Supreme Court to examine Covid-19 related issues.

"The ongoing pandemic is a textbook situation when exercise of the power of exemption is a public necessity," it said.

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An exemption of 12% GST levied on the product, including Remdesivir, would lead to a further decrease in the overall cost of the product, thereby making it significantly more affordable to the common public who are in dire need of this critical drug, it added.

The application filed by advocate Astha Sharma asked the court to direct the central government to invoke its powers under Section 11 of the Central GST Act 2017 in view of the ongoing crisis.

"The power to exempt critical drugs and other medical equipment are in furtherance of the constitutional commitment of the welfare state to protect the right to health of its citizenry," the plea said.

"The Right to Health in times of pandemic, assumes an ever more crucial significance since affordable healthcare and availability of drugs which are critical to fight moderate and severe cases of illness have to be given paramount importance. This would have the effect of preventing black marketing, hoarding of such drugs and other medical equipment, as well as ensure that the same is available to the citizens at affordable cost," it said.