State Tax Rate

## Report on Delhi Government Notification No. 122021 **1. Executive Summary:** This report analyzes Delhi Government Notification No. 122021, which concerns exemptions from the Delhi Goods and Services Tax (DGST) Act, 2017, for specific goods falling under Chapter 30 of the Customs Tariff Act, 1975. The notification provides a reduced tax rate (Nil or 2.5%) on certain pharmaceutical products, including Tocilizumab, Amphotericin B, Remdesivir, and others deemed relevant to public health. The notification was effective from October 1, 2021, and remained in force until December 31, 2021. The core purpose is to reduce the tax burden on certain pharmaceuticals during the specified period. **2. Introduction:** This report aims to provide a comprehensive overview of Delhi Government Notification No. 122021 based solely on the provided text. It details the policy's objectives, key provisions regarding tax exemptions on specific goods, the intended audience, and expected outcomes. **3. Policy Overview:** This is a new policy granting exemptions from the Delhi Goods and Services Tax Act, 2017. * **Core Objective(s):** The core objective, inferred from the text, is to reduce the applicable tax rate on certain pharmaceutical goods within the National Capital Territory of Delhi, with the implied aim of making these goods more accessible or affordable during the period the notification was active. **4. Background and Rationale:** * **Likely Problem/Issue:** Inferred from the types of goods listed, the policy likely addresses the need to make essential medicines, potentially related to a public health crisis (such as an epidemic or pandemic) more affordable and accessible to the public. The inclusion of drugs such as Remdesivir, Tocilizumab and Amphotericin B suggests an urgent need to address a serious health concern. **5. Key Provisions / Changes:** This is a new policy, therefore, the following provisions are detailed: * Exempts the goods specified in column 3 of the table from the central tax leviable under section 9 of the Delhi Goods and Services Tax Act, 2017. * The exemption reduces the tax to a rate specified in column 4 of the table. For Tocilizumab and Amphotericin B the rate is Nil, and for Remdesivir, Heparinanticoagulant, Itolizumab, Posaconazole, Infliximab, BamlanivimabEtesevimab, CasirivimabImdevimab, 2DeoxyDGlucose, and Favipiravir the rate is 2.5%. * The goods are defined by their tariff item, subheading, heading or chapter as specified in the First Schedule to the Customs Tariff Act, 1975, as specified in the corresponding entry in column 2 of the table. * The notification was effective from October 1, 2021, and remained in force up to and inclusive of December 31, 2021. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders include: * Manufacturers, suppliers, and distributors of the listed pharmaceutical products. * Healthcare providers (hospitals, clinics, pharmacies) dispensing these medications. * Consumers/patients who require access to these medications within the National Capital Territory of Delhi. * The Delhi government's finance and tax departments responsible for implementing and administering the DGST Act. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Finance (Expenditure) Department of the Government of NCT of Delhi is the responsible agency. The Lieutenant Governor of the National Capital Territory of Delhi approved the notification based on recommendations of the Council. * **Timelines or Procedures:** The notification specifies a clear start and end date for the exemptions: October 1, 2021, to December 31, 2021. The process for claiming the exemption would likely be defined by the broader DGST Act and related regulations. **8. Expected Outcomes / Impact of Changes:** * The likely intended outcome is to reduce the cost of the specified medications, making them more accessible to patients within Delhi. This would, in turn, potentially improve public health outcomes during the notification's effective period. The reduced tax burden on manufacturers and suppliers could also incentivize increased supply and distribution of these essential goods. **9. Conclusion:** Delhi Government Notification No. 122021 provides a temporary reduction in GST rates for a specific list of pharmaceutical products. The policy aimed to ease the financial burden on consumers and improve access to essential medicines within Delhi during the specified timeframe. The notification demonstrates a proactive approach to addressing public health needs by leveraging tax policy to influence the affordability and availability of critical medications.

Key Entities Referenced