Stalin wants zero GST on Covid vaccines, medicines
Chennai, May 13 (UNI): Tamil Nadu Chief Minister M K Stalin on Thursday urged Prime Minister Narendra Modi to levy zero GST on Covid vaccines, ensure quick disbursal of pending GST compensation, rice subsidy, sanction ad hoc grants-in-aid and hike the state’s borrowing limits from 3% of SGDP to 4% in view of the pandemic.
In a letter to Modi, he urged him to reduce the GST on Covid-19 vaccines and other related medicines procured by state governments to “zero” for a certain period after holding consultations with GST Council since the state government itself was procuring them.
He said the Centre should fix the GST at zero rate for these items.
Stalin put forth three demands to offset the revenue loss in view of the state’s economy impacted by the pandemic. Apart from releasing the pending GST compensation dues, he urged Modi to immediately release the rice subsidy due to the State Civil Supplies Corporation.
With a view to mobilising funds to meet the additional expenditure during this pandemic, he urged Modi to allow the States to increase the borrowings from 3% to 4%.