The state demanded the reduction of tax rates for items required for Covid management, such asvaccines, at the 43rdGST councilmeeting headed by Union finance ministerNirmala Sitharamanthrough video-conference.
Representing the state, finance ministerNiranjan Pujarisaid the reduction ofGSTon Vaccines and other consumables would ease the burden on common people and also on the states procuring these to deal with the unprecedented healthcare crisis.
As chief ministerNaveen Patnaikhas already sought the intervention of the Union finance minister for the exemption of GST on the purchase of Covid-19 vaccines by the states, Pujari demanded that the GST council should consider the matter on priority in view of the urgency.
Raising the issue of GST compensation to the states, theOdishafinance minister demanded that the system introduced by theCentreshould continue in this financial year as well and the states be compensated accordingly.
During the 2020-21 financial year, the Centre had zeroed in on a formula to compensate the states for the loss of revenue owing to implementation of the GST. As the collection of GST had reduced significantly owing to the lockdown, the Centre had raised a certain amount through borrowing and passed it to the states as compensation. The amount will be repaid out of the GST cess receipt collected by the Centre later.