GST on vaccines in the 'interest of citizens,' must to keep rates low: FM

If full exemption from GST is given, vaccine makers would not be able to offset their input taxes and would pass them on to the end consumer by increasing the price, says FM

Finance Minister Nirmala Sitharaman on Sunday said that the goods and services tax (GST) on coronavirus-related drugs and vaccines is necessary so that manufacturers offset their input taxes and keep the prices low. 

"If full exemption from GST is given, vaccine manufacturers would not be able to offset their input taxes and would pass them on to the end consumer/citizen by increasing the price," Sitharaman said.

The Finance Minister was responding to a letter by West Bengal Chief Minister Mamata Banerjee to the Prime Minister Narendra Modi seeking GST exemption on various coronavirus-related drugs.

"A 5 per cent GST rate