Context: Overview of different options before GST Council to provide relief on Covid-mitigation products.
Tax Inversion: Scenario where the rate of tax on inputs needed for manufacture of products exceeds the rate of tax on their sale.
Issues with exempting taxes on Covid-related products
Various options can be considered:
Conclusion: GST Council needs to deliberate on all pros and cons of any move designed to provide relief and the likely fallout of any such move on all stakeholders.