Plea filed in Supreme Court seeking exemption from GST for medical equipment, COVID-19 drugs including Remdesivir

A plea has been filed before the Supreme Court seeking exemption from Goods and Service Tax (GST) for COVID-19 drugs including Remdesivir, Tocilizumab, Favipiravir and medical equipment used for COVID-19 care. .The plea was filed by an NGO, Public Policy Advocates (applicant) as an application in the suo motu case initiated by the Supreme Court to examine COVID-19 related issues. .The applicant asked the Court to direct the Central government to invoke its powers under Section 11 of the Central GST Act 2017 to grant exemption from GST to drugs and medical equipment in view of the ongoing COVID-19 crisis. ."The Act empowers the Central Government to exempt goods or services, or both, from the tax leviable thereon on the basis of the recommendations of the Goods and Services Tax Council/Respondent No. 2 if it is satisfied that it is necessary in the public interest," the plea said. The ongoing pandemic is a textbook situation when exercise of the power of exemption is a public necessity as part of the commitment of the Welfare State to raise the standards of public health, as part of its commitment in the Directive Principles of State Policy, it added. .The application specifically prayed for a direction be issued to the GST Council to convene a meeting as contemplated in Section 11 and examine this issue. ."Direct Respondent No. 2 (GST Council) to convene a meeting expeditiously and direct exemption of GST with respect to Covid-19 related drugs including but not limited to Remdesivir, Tocilizumab, Favipiravir and other drugs with similar generic constitution, medical equipment including but not limited to Ventilators & Bipap Machines, and other medical treatment for infection prevention, control measures and supportive care for Covid-19 patients including but not limited to Medical Grade Oxygen, Oxygen Concentrators etc," the applicant submitted. .With regard to the drug Remdesivir, it was specifically contended that "an exemption of 12 percent cost of the product charged as GST which is otherwise leviable, would lead to a further decrease in the overall cost of the product, thereby making it significantly more affordable to the common public which is in dire need of this critical drug."."The Right to Health in times of pandemic, assumes an ever more crucial significance since affordable healthcare and availability of drugs which are critical to fight moderate and severe cases of illness have to be given paramount importance. This would have the effect of preventing black marketing, hoarding of such drugs and other medical equipment, as well as would ensure that the same is available to the citizens at affordable cost," the application said. .The application was filed through advocate Astha Sharma, and drawn by advocates Nipun Saxena and Mantika Haryani.