Thursday, 28 October 2021

New GST rates on the item after 45th GST Council Meet

New GST rates on the item after 45th GST Council Meet

Nirmala Sitharaman, Finance Minister, today announced the decisions taken by the Council after an hour's meeting. While the Council extended the discounted tax rates on medicines Corona-related till 31st Dec 2021, it felt it was not the correct time to include diesel and petrol under GST, as was speculated before the meeting.

45th GST Council Meet

During a press brief after the meeting, Sitharaman said that much media talk on whether petroleum products would be brought under the GST tax.

She said.

"This came on today's agenda purely due of Kerala High Court order where it suggested the matter to be placed before GST Council panel. The Council member made it clear they dont want petroleum products to be add under GST. It was decided, we will report to HC of Kerala that, matter has been discussed and Council felt it was not the correct time to bring petroleum products under GST,"

Covid relief measure in the form of concessions rate

The Council decided to extend existing concessional GST rates on Covid-19 treatment medicine and drugs till 31st Dec this year.

These medicines include Remdesivir (5%), Amphotericin B (nil), Tocilizumab (zero), Anti-coagulants like Heparin (5%).

New GST rates on the item after 45th GST Council Meet 1pixabay image

Read More : LPG price hiked once again in a month

Reduction of GST rate to 5%

- Itolizumab

- Posaconazole

- Infliximab

Favipiravir

- Casirivimab & Imdevimab

- 2-Deoxy-D-Glucose

- Bamlanivimab and Etesevimab

Significant recommendations on GST rate changes

GST reduced to 5% on Retro fitment kits for vehicles used by the disabled

GST reduced from 18% to 5% on Fortified Rice Kernels for schemes like ICDS etc.

GST reduced from 12% to 5% on Medicine Keytruda for treatment of cancer.

GST reduced from 12% to 5% on Biodiesel supplied to OMCs for blending with diesel.

GST increased from 5 to 18% on Ores and concentrates of metals such as iron, copper, aluminum, zinc, and few others.

GST increased from 5 to 12% on Specified Renewable Energy Devices and parts.

GST increased from 12/18% to 18% on Cartons, boxes, bags, packing paper containers, etc.

GST increased from 5 to 18% on waste and scrap of polyurethanes and other plastics.

GST increased from 12/18% to 18% on All kinds of pens.

GST increased from 12% to 18% on Railway parts, locomotives, and other goods in Chapter 86.

GST increased from 12% to 18% on Miscellaneous goods of paper like cards, catalogs, printed material (Chapter 49 of tariff).

IGST exemption on goods supplied at Indo-Bangladesh - No GST

Unintended waste generated during the production of the fish meal except for Fish Oil - No GST.

No GST

IGST on import medicines for personal use, namely list below:

- Zolgensma for Spinal Muscular Atrophy

- Viltepso for Duchenne Muscular Dystrophy

- Other medicines used in treating muscular atrophy are recommending by the Ministry of Health and Family Welfare and Pharmaceuticals Department.

The GST Council decided to tax food delivery platforms such as Swiggy and Zomato. Sitharaman informed that 5% GST would be leveeing when Swiggy and Zomato make the delivery. This means that now online food ordering will get expensive.

Nirmala Sitaram informed that inverted duty structure anomalies for ores and specified metals would be corrected, but the GST Council has not yet decided on any date.

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