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[F. No. CBIC-190354/63/2021-TO(TRU-I)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 14th June, 2021
Notification No. 05/2021 - Integrated Tax (Rate): Seeks to provide the concessional rate of Integrated Goods and Services Tax on Covid-19 relief supplies, up to and inclusive of 30th September 2021.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R….(E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) (hereafter in this notification referred to as “the said Act”), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,
hereby exempts the goods specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as the case may be, as specified in the corresponding entry in column (2), of the Table below, from the so much of the integrated tax leviable thereon under section 5 of the said Act, as in excess of the amount as specified in corresponding entry in column (4) of the aforesaid Table, namely:-
Table
| Sl. No. | Chapter, Heading, Sub-heading or Tariff item | Description of Goods | Rate |
| (1) | (2) | (3) | (4) |
| 1 | 2804 | Medical Grade Oxygen | 5% |
| 2 | 30 | Tocilizumab | Nil |
| 3 | 30 | Amphotericin B | Nil |
| 4 | 30 | Remdesvir | 5% |
| 5 | 30 | Heparin (anti-coagulant) | 5% |
| 6 | 3002 or 3822 | Covid-19 testing kits | 5% |
| 7 | 3002 or 3822 | Inflammatory Diagnostic (marker) kits, namely- IL6, D- Dimer, CRP (C-Reactive Protein), LDH (Lactate De- Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents. | 5% |
| 8 | 3804 94 | Hand Sanitizer | 5% |
| 9 | 6506 99 00 | Helmets for use with non-invasive ventilation | 5% |
| 10 | 8417 or 8514 | Gas/Electric/other furnaces for crematorium | 5% |
| 11 | 9018 19 or 9804 | Pulse Oximeter | 5% |
| 12 | 9018 | High flow nasal canula device | 5% |
| 13 | 9019 20 or 9804 | Oxygen Concentrator/ generator | 5% |
| 14 | 9018 or 9019 | Ventilators | 5% |
| 15 | 9019 | BiPAP Machine | 5% |
| 16 | 9019 | Non-invasive ventilation nasal or oronasal masks for ICU ventilators Canula for use with ventilators | 5% |
| 17 | 9025 | Temperature check equipment | 5% |
| 18 | 8702 or 8703 | Ambulances | 12% |
2. This notification shall remain in force up to and inclusive of the 30thSeptember, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 05/2021 - Integrated Tax (Rate)
Q1: What is Notification No. 05/2021 – Integrated Tax (Rate)?
Answer:
📜 Notification No. 05/2021 – Integrated Tax (Rate) was issued to grant concessional IGST rates on essential Covid-19 relief goods.
The Central Government, on the recommendation of the GST Council, provided temporary tax relief to help fight the pandemic by reducing the Integrated Tax (IGST) on specified medical equipment and supplies.
This notification came as a much-needed step to make critical healthcare items affordable during the peak of the Covid-19 crisis in 2021.
Q2: When did this notification come into force and till when was it valid? ⏳
Answer:
The concessional IGST rates under Notification No. 05/2021 – Integrated Tax (Rate) were applicable up to and inclusive of 30th September 2021.
This temporary tax relief was introduced as an emergency response to the pandemic’s second wave.
Q3: What was the main objective of this notification? 🎯
Answer:
The key objective was to reduce the cost of Covid-19 treatment by lowering IGST rates on life-saving medicines, testing kits, and medical devices.
It ensured faster and cheaper import or supply of items like:
Medical-grade oxygen,
Ventilators,
Pulse oximeters,
Covid-19 testing kits, and
Ambulances.
Q4: What does this notification mean for healthcare providers and importers? 🏥
Answer:
For hospitals, distributors, and importers, this notification provided:
Lower tax outflow on essential imports and local purchases.
Cheaper procurement of oxygen equipment and Covid-19 medicines.
Simplified IGST compliance during emergency relief efforts.
For assistance with GST filings for healthcare entities, visit Finodha GST Compliance Services.
Q5: Why were items like Tocilizumab and Amphotericin B given 0% Integrated Goods and Services Tax? 💊
Answer:
Both Tocilizumab (used for severe Covid-19 inflammation) and Amphotericin B (used for black fungus treatment) were critical life-saving drugs.
The government exempted them completely (Nil IGST) to ensure affordability and uninterrupted availability during the health emergency.
If you deal in pharma distribution, Finodha GST Experts can help ensure smooth tax compliance and input credit management.
Q6: How did this notification benefit common citizens? 👨👩👧👦
Answer:
This measure:
Reduced the overall cost of Covid-19 treatment,
Lowered hospital procurement costs, and
Helped NGOs, hospitals, and relief agencies supply essential items without heavy tax burden.
By cutting IGST on critical goods, the government ensured that life-saving tools reached citizens faster and at fair prices.
Q7: What was the Integrated Goods and Services Tax rate for ambulances under this notification? 🚑
Answer:
Ambulances were taxed at a concessional IGST rate of 12%, enabling hospitals and emergency service providers to expand their fleets affordably during Covid-19 surges.
To set up a healthcare business or hospital venture, explore Setup Business with Finodha.
Q8: Were oxygen-related devices included in the IGST concession? 🫁
Answer:
✅ Yes. Multiple oxygen-related products benefited from reduced IGST rates, such as:
Medical grade oxygen (5%)
Oxygen concentrators and generators (5%)
High flow nasal cannulas (5%)
Ventilators and BiPAP machines (5%)
Non-invasive ventilation masks and canulas (5%)
For GST registration of medical device businesses, visit Online GST Registration.
Q9: Was this notification an extension or a new measure?
Answer:
This was a continuation and expansion of earlier Covid-19 tax relief measures introduced under Notification No. 4/2021 – Integrated Tax (Rate) and others.
It consolidated concessional rates and extended them until 30th September 2021, covering a broader list of Covid-related medical items.
Q10: Who recommended these IGST concessions? 🏛️
Answer:
These changes were made on the recommendation of the GST Council, which decided in its emergency meetings to support India’s Covid-19 response with fiscal relief measures under the Integrated Tax Act.
Download PDF: Notification No. 05/2021 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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