Lowering taxes on life-saving medicines, bringing petrol and diesel throughout the ambit of oblique tax, rationalizing an inverted obligation construction, and treating meals supply apps as restaurant companies have been a few of the key themes on the agenda. This is what you want to know:
Tac concessions on Medication
FM Sitharaman began the convention with saying the GST Council’s choice to provide tax concessions on life-saving medicine. Moreover, there shall be no GST on Amphotericin B, Tocilizumab until December 31 this yr.
Concessional GST charges on Covid-related medicine, which have been until September 30, have now been prolonged until December 31 just for medicines, however not for medical tools.
The proposal of decreasing GST from 12% to five% on seven extra medicine until December 31, 2021 was additionally accepted: Itolizumab, Posaconazole, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab, 2-Deoxy-D-Glucose and Favipiravir.
“There are some life-saving medicine not related with Covid-19, however are very costly, for which exemptions are being given,” the FM mentioned. “Zolgngelsma and Viltepso costing round Rs 16 crore will now be exempted from GST,” she added.
GST on retro-fitment kits for autos utilized by individuals with disabilities was decreased to five% and medicines urged by the Well being Ministry for treating muscular atrophy have been exempted from IGST.
Petrol and Diesel
The GST Council took no last choice on the proposal to deliver petrol below GST. Sitharaman categorically mentioned this was not proper time to take action and talked about the matter was introduced earlier than the Council as a result of Kerala HC order.
The GST Council will return to the Courtroom with its rationale.
States vehemently opposed the inclusion of the fuels whereas elevating considerations on income buoyancy through the meet, as per govt sources. “We’re not saying that we must always deliver petrol and diesel below GST instantly, we’re mainly asking states to counsel a timeline,” a govt supply had advised TOI earlier than the essential meet.
When GST was launched in July 2017, 5 commodities together with crude oil, pure fuel, petrol, diesel and aviation turbine gasoline (ATF) have been stored out of the GST purview, contemplating the income dependence of the central and state governments on them.
The FM introduced that two teams of ministers shall be constituted to look into sure adjustments within the GST regime. One group would have a look at price rationalisation points and submit a report in two months, whereas the second group will look into associated problems with e-way payments, fastags, know-how, compliance, composition schemes.
It was additionally advised that GST compensation cess will have to be prolonged until March 2026.
The GST Council exempted nationwide allow payment charged by states for operation of products carriage. A discount in GST price on biodiesel — equipped to OMCs for mixing with diesel — from 12% to five% was additionally introduced.
The Council accepted rising GST on railway half and locomotives to 18% from the present 12%.
An inverted obligation scheme on footwear and textiles shall be corrected from January 1, 2022, mentioned Sitharaman. Now 12% GST shall be relevant on particular renewable units and pens will now entice single GST price of 18%.
GST price on fortified rice kernels which can be utilized in Built-in Baby Growth Providers Scheme has been decreased from 18% to five%.
Meals Supply Platforms
“There is no such thing as a new tax,” the FM mentioned on experiences about GST on meals order from
and Swiggy. “E-commerce operators Swiggy and Zomato to pay GST on restaurant service equipped by them, and tax to be charged at level of supply,” she added.