Notification No. 12/2021 GST Exemption on COVID-19 Medicines

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Notification No. 12/2021 - Central Tax (Rate): Seeks to exempt CGST on specified medicines used in COVID-19, up to 31st December, 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 11 of the Central Goods and Services Tax Act, 2017 (12 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 said Table, from so much of the central tax leviable thereon under section 9 of the said Act, as is in excess of the amount calculated at the rate 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	30	Tocilizumab	Nil
2	30	Amphotericin B	Nil
3	30	Remdesivir	2.5%
4	30	Heparin (anti-coagulant)	2.5%
5	30	Itolizumab	2.5%
6	30	Posaconazole	2.5%
7	30	Infliximab	2.5%
8	30	Bamlanivimab & Etesevimab	2.5%
9	30	Casirivimab & Imdevimab	2.5%
10	30	2-Deoxy-D-Glucose	2.5%
11	30	Favipiravir	2.5%

2. This notification shall come into force from the 1^st day of October, 2021 and remain in force up to and inclusive of the 31^st December, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 12/2021- Central Tax (Rate)

Q1: What is Notification No. 12/2021 – Central Tax (Rate)?

Answer:
It is a GST notification issued on 30th September 2021, granting CGST exemption or reduction on specified COVID-19 related medicines, effective from 01.10.2021 to 31.12.2021Notification No. 122021 - Centr….

Q2: Which medicines were fully exempted from CGST?

Answer:
Two life-saving drugs were exempted from GST entirely:
Tocilizumab (Nil rate)
Amphotericin B (Nil rate)Notification No. 122021 - Centr…

Q3: Which medicines had a reduced GST rate of 2.5%?

Answer:
Several medicines critical to COVID-19 treatment were taxed at a concessional 2.5% CGST, including:
Remdesivir
Heparin (anti-coagulant)
Itolizumab
Posaconazole
Infliximab
Bamlanivimab & Etesevimab
Casirivimab & Imdevimab
2-Deoxy-D-Glucose
Favipiravir Notification No. 122021 - Centr…

Q4: Why was this exemption introduced?

Answer:
The exemption was introduced to reduce the financial burden on patients and healthcare providers during the pandemic, ensuring affordable access to life-saving medicines.

Q5: What was the validity period of this notification?

Answer:
It came into force on 1st October 2021 and remained valid up to 31st December 2021Notification No. 122021 - Centr….

Q6: How does this exemption benefit taxpayers and patients?

Answer:
✅ Lower medical costs for COVID-19 patients
✅ Reduced hospital billing pressure
✅ Simplified compliance for suppliers of exempted drugs

Q7: Is this exemption still applicable in 2025?

Answer: No ❌. The exemption was time-bound and ended on 31.12.2021. However, future exemptions or reliefs are notified separately by the Government.

Q8: How can businesses dealing in exempted medicines manage GST compliance?

Answer:
Businesses should:
Properly classify medicines under exempt or concessional GST rates.
File accurate GST returns with exemptions reflected.
Seek professional guidance from a GST Expert at Finodha for smooth compliance.

Q9: Where can I find help with GST registration and return filing?

Answer:
You can explore:
GST Registration Online
GST Return Filing
GST Compliance
All services are offered by Finodha.in – your trusted GST professional partner.

Q10: Were COVID-19 related imports also covered under GST relief?

Answer:
Yes. Separate notifications also provided relief on imports of COVID essentials like oxygen concentrators, vaccines, and diagnostic kits. Notification No. 12/2021 specifically covered medicines under Central Tax (Rate).

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