Notification No. 12/2021 – COVID-19 Medicine Tax Relief

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 12/2021 - Integrated 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 6 of the IGST 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 said Table, from so much of the integrated tax leviable thereon under section 5 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	5%
4	30	Heparin(anti-coagulant)	5%
5	30	I talizumab	5%
6	30	Posaconazole,	5%
7	30	Infliximab	5%
8	30	Bamlanivimab & Etesevimab	5%
9	30	Casirivimab & Imdevimab	5%
10	30	2-Deoxy-D-Glucose	5%
11	30	Favipiravir	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 - Integrated Tax (Rate)

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

Answer:
Notification No. 12/2021 – Integrated Tax (Rate), dated 30th September 2021, exempts or reduces IGST on several life-saving COVID-19 medicines up to 31st December 2021. This measure was taken in the public interest to reduce treatment costs during the pandemicnotfctn-12-2021-igst-rate-engli….
👉 For clarity on GST exemptions, consult a GST Expert.

Q2: Which medicines were exempted from IGST under this notification?

Answer:
The following medicines were covered:
Nil rate (0%): Tocilizumab, Amphotericin B
Reduced rate (5%): Remdesivir, Heparin, Itolizumab, Posaconazole, Infliximab, Bamlanivimab & Etesevimab, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose, Favipiravir
💊 This provided direct relief to patients and hospitals managing COVID-19 cases.

Q3: From when was this exemption applicable?

Answer:
The notification came into effect on 1st October 2021 and remained valid till 31st December 2021. Post this date, the regular GST rates applied unless further extended by new notifications.
📌 Stay updated with GST Compliance Services.

Q4: Why did the government introduce this exemption?

Answer:
The exemption was introduced to:
Reduce the financial burden on COVID-19 patients.
Ensure affordable availability of life-saving drugs.
Support the healthcare system by lowering treatment costs.

Q5: Did this exemption apply only to imports or also to domestic supply?

Answer:
The exemption applied to both imports and domestic supply of the listed medicines, as it was aimed at reducing the overall cost to end-users irrespective of the source.
🌐 For pharma businesses, ensure correct GST compliance via GST Registration.

Q6: How did this exemption impact hospitals and COVID care centers?

Answer:
Reduced procurement cost for essential COVID drugs.
Lowered billing for patients.
Helped hospitals maintain adequate stocks without heavy tax burdens.
🏥 Healthcare providers benefited but still needed to comply with GST filing. Support available at GST Return Filing.

Q7: Was the exemption extended beyond 31st December 2021?

Answer:
No ❌. As per Notification No. 12/2021, the relief was only valid until 31st December 2021. Any extension required separate notification by the government, which was not issued beyond 2021.

Q8: How does this notification connect with earlier GST COVID relief measures?

Answer:
Earlier in 2021, GST Council recommended tax cuts on COVID-related essentials like oxygen concentrators, oxygen, medical equipment, and medicines. Notification 12/2021 specifically focused on critical COVID-19 medicines.
👉 Explore more compliance updates via Finodha GST Services.

Q9: What lessons can businesses draw from this exemption?

Answer:
GST exemptions are often time-bound and sector-specific.
Businesses must track notifications regularly to apply correct rates.
Pharma companies must adjust ERP and invoicing systems promptly during such exemptions.
📊 For future readiness, partner with Private Limited Compliance Services.

Q10: How can Finodha assist in such GST-related exemptions?

Answer:
Finodha offers:
Advisory on tax exemptions & GST rates.
Return filing support to ensure accurate exemption claims.
Pharma & healthcare compliance consulting.
End-to-end business support: from Setup Business to MSME Registration.