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Table of Contents
[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 - Union Territory Tax (Rate): Seeks to provide the concessional rate of UTGST 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 8 of the UTGST Act, 2017 (14 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 union territory tax leviable thereon under section 7 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 | 2.5% |
| 2 | 30 | Tocilizumab | Nil |
| 3 | 30 | Amphotericin B | Nil |
| 4 | 30 | Remdesivir | 2.5% |
| 5 | 30 | Heparin (anti-coagulant) | 2.5% |
| 6 | 3002 or 3822 | Covid-19 testing kits | 2.5% |
| 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. | 2.5% |
| 8 | 3804 94 | Hand Sanitizer | 2.5% |
| 9 | 6506 99 00 | Helmets for use with non-invasive ventilation | 2.5% |
| 10 | 8417 or 8514 | Gas/Electric/other furnaces for crematorium | 2.5% |
| 11 | 9018 19 or 9804 | Pulse Oximeter | 2.5% |
| 12 | 9018 | High flow nasal canula device | 2.5% |
| 13 | 9019 20 or 9804 | Oxygen Concentrator/ generator | 2.5% |
| 14 | 9018 or 9019 | Ventilators | 2.5% |
| 15 | 9019 | BiPAP Machine | 2.5% |
| 16 | 9019 | Non-invasive ventilation nasal or oronasal masks for ICU ventilators Canula for use with ventilators | 2.5% |
| 17 | 9025 | Temperature check equipment | 2.5% |
| 18 | 8702 or 8703 | Ambulance | 6% |
2. This notification shall remain in force up to and inclusive of the 30th September, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 05/2021 - Union Territory Tax (Rate)
Q1️⃣: What is Notification No. 05/2021 – Union Territory Tax (Rate)? 🧾
Answer:
This notification provides reduced GST rates under the UTGST Act on COVID-19 related essential goods such as oxygen, ventilators, and medicines.
The rates were lowered to 2.5% or nil for specific medical products to make healthcare affordable during the pandemic.
👉 For GST expert consultation, visit Finodha GST Professionals.
Q2️⃣: When was Notification No. 05/2021 issued and what is its validity? 📅
Answer:
It was issued on 14th June 2021 and remained in force up to and inclusive of 30th September 2021.
The relief was temporary, targeting urgent pandemic-related supply challenges during India’s second COVID-19 wave.
Q3️⃣: What was the objective behind issuing this notification? 🎯
Answer:
The main purpose was to:
✅ Provide GST relief on life-saving COVID-19 products.
✅ Ensure affordability for hospitals, patients, and distributors.
✅ Support India’s public health response through fiscal measures.
✅ Simplify supply chain taxation during emergency imports and domestic production.
(Focus Keywords: Notification No. 05/2021 – Union Territory Tax (Rate), GST COVID relief supplies)
Q4️⃣: Which diagnostic kits were included under this notification? 🧫
Answer:
The notification covered Inflammatory Diagnostic Marker Kits, including:
IL6
D-Dimer
CRP (C-Reactive Protein)
LDH (Lactate Dehydrogenase)
Ferritin
Procalcitonin (PCT)
Blood Gas Reagents
All of these diagnostic kits were taxed at a concessional 2.5% rate to promote rapid COVID-19 testing.
Q5️⃣: Were medical equipment and accessories also included? ⚙️
Answer:
Yes ✅ The list extended to essential devices such as:
High-flow nasal cannula devices
Helmets for non-invasive ventilation
Gas/electric furnaces for crematoriums
Temperature check equipment
Oxygen concentrators
Pulse oximeters
These items were made more affordable for hospitals, NGOs, and emergency responders.
For GST compliance support, check GST Compliance Services.
Q6️⃣: Why were Tocilizumab and Amphotericin B given full GST exemption? 💉
Answer:
These two medicines were critical for treating severe COVID-19 cases and mucormycosis (black fungus).
By making them completely GST-free (Nil rate), the government ensured price stability and uninterrupted medical access for patients.
Q7️⃣: How did this notification help hospitals and suppliers? 🏥
Answer:
✅ Lower input costs for hospitals and clinics.
✅ Reduced overall treatment costs for patients.
✅ Encouraged import and domestic manufacturing of life-saving medical goods.
✅ Simplified compliance under UTGST during the pandemic.
For hospital setup and legal registration, explore Setup Business in India.
Q8️⃣: What is the GST rate on ambulances under this notification? 🚑
Answer:
Ambulances were taxed at a concessional rate of 6% (UTGST), down from higher rates earlier.
This reduction supported both emergency transport providers and healthcare infrastructure expansion.
(Focus Keywords: Notification No. 05/2021 – Union Territory Tax (Rate), ambulance GST rate, medical equipment GST relief)
Q9️⃣: Where can businesses and importers seek GST clarification for COVID relief supplies? 💡
Answer:
You can contact Finodha GST Experts for professional support on:
🧾 GST Return Filing
💼 GST Registration
📈 Private Limited Compliance
💻 Digital Signature Certificate (DSC)
🏢 MSME Registration
Download PDF: Notification No. 05/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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