Finance Minister Nirmala Sitharaman on 17th September 2021 host the first in-person GST Council meeting held since the outbreak of the coronavirus pandemic. At the 45th Goods and Services Tax (GST) Council meet held in Lucknow many issues were discuss which includes bringing petrol and diesel under the GST.
The Finance Minister Nirmala Sitharaman said that “quite a few people-friendly decisions” have been taken.
Highlights of FM Nirmala Sitharaman’s Address :
- Online food delivery aggregator firms Swiggy and Zomato will now be liable to pay GST and not the restaurant partners.
- Food delivery apps will now collect and deposit GST with the government.
- Petrol and diesel will not be brought under the GST regime yet.
- GST rate on biodiesel which is supply to oil marketing companies for mixing with diesel has been reduce from 12% to 5%.
- The GST rates on Retro Fitment Kits for vehicles use by persons with special disabilities have also been reduce to 5%.
- GST rate on fortify rice kernels for schemes like integrate child development schemes has been recommended to be reduce from 18% to 5%.
- Transport of export goods by vessels and air has been exempt from GST till 30th September 2021.
- This exemption was given as exporters were facing difficulties in getting a refund of ITC (Input Tax Credit) due to technical glitches on the GST portal.
- States charge national permit fees for granting permits to goods carriages. This fee has been exempt from the GST.
- Cess to pay back compensation loans taken by Centre and then transferred to states last fiscal and this fiscal will continue till March 2026.
- After June 2022 the cess will be collect only to repay the loans taken by the states.
- The inverted duty structure on footwear and textiles will be correct from 1st January 2022.
- On locomotives and certain railway parts the GST rate has been increase to 18% from 12% to correct the inverted duty structure.
- GST of 12% will be applicable on specific renewable devices.
- Concessional GST rates on COVID-19 related drugs which were applicable till 30th September 2021 have been extend till 31st December 2021.
- The extension on concessional rates has been given only for medicines like Remdesivir and not for medical equipment.
- The following rates will be applicable : Amphotericin B (nil rate), Tocilizumab (nil rate), Remdesivir (5%), anticoagulants like Heparin (5%).
- GST rates on seven other medicines which were recommend by the Department of Pharmaceuticals have also been recommend for reduction from 12% to 5%.
- This has been extend till 31st December 2021.
- GST rates on cancer-related drugs and other medicines use to treat cancer are also likely to come down from 12% to 5%.
- GST exemption has additionally been given on expensive import drugs such as Zolgensma and Viltesto.
- These two important drugs cost around Rs 16 crores.
- Drugs use for treating muscular atrophy on the recommendation of the Health Ministry and Department of Pharmaceuticals are also exempt for IGST on import for personal use.
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