New GST Changes: Following the 45th GST Council Meet on Friday, in Lucknow, a number of goods and commodities saw a revision of GST rates. It should also be noted that the GST Council, under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman decided to extend the existing concessional GST rates on the supply of goods and services in relation to GST law and procedures. One such important change was that of the concessions on the GST rates introduced for the Covid-19 treatment drugs till December 31, 2021. The council also felt that it was not the right time t include petrol or diesel under the GST, quelling the concerns and speculations that surrounded the topic ahead of the meeting.
During a press briefing after the meet, Sitharaman said that there had been a lot of media speculation on whether petroleum products would be brought under the ambit of GST. “This came on today’s agenda purely because of the Kerala High Court order where it suggested the matter to be placed before GST Council. The Council members made it clear they do NOT want petroleum products to be included under GST. It was decided, we will report to Kerala HC that, the matter has been discussed and Council felt it was not the time to bring petroleum products under GST,” she said.
New GST Changes: Here’s a list of changes that you should know about.
GST exemption
The Council today decided to extend existing concessional GST rates on Covid-19 treatment drugs till 31st December 2021. These medicines include Amphotericin B (nil), Remdesivir (5%), Tocilizumab (nil), Anti-coagulants like Heparin (5%).
Reduction of GST rate to 5%
– Itolizumab
– Posaconazole
– Infliximab
– Favipiravir
– Casirivimab & Imdevimab
– 2-Deoxy-D-Glucose
– Bamlanivimab and Etesevimab
Major Recommendations on GST Rate Changes for Goods (Effective from October 1, 2021)
GST Rates that were Slashed.
Retro fitment kits for vehicles used by the disabled – GST rate slashed to 5 percent
Fortified Rice Kernels for schemes like ICDS etc. – GST slashed from 18 percent to 5 percent
Medicine Keytruda for treatment of cancer – GST slashed from 12 percent to 5 percent
Biodiesel supplied to OMCs for blending with Diesel – GST slashed from 12 percent to 5 percent
IGST on import of medicines for personal use (Zolgensma for Spinal Muscular Atrophy, Viltepso for Duchenne Muscular Dystrophy, Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals) – GST slashed from 12 percent to Nil GST
Unintended waste generated during the production of the fish meal except for Fish Oil – Nil GST for the period of July 1, 2017, to September 30, 2019.
IGST exemption on goods supplied at Indo-Bangladesh Border haats – Nil GST..
Ores and concentrates of metals such as iron, copper, aluminum, zinc, and few others – GST increased from 5 to 18%
Specified Renewable Energy Devices and parts – GST increased from 5 to 12%
Cartons, boxes, bags, packing containers of paper, etc. – GST increased from 12/18% to 18%
Waste and scrap of polyurethanes and other plastics – GST increased from 5 to 18%
All kinds of pens – GST increased from 12/18% to 18%
Railway parts, locomotives, and other goods in Chapter 86 – GST increased from 12% to 18%
Unintended waste generated during the production of the fish meal except for Fish Oil – Nil GST.
Nil GST
IGST on import of medicines for personal use, namely:
– Zolgensma for Spinal Muscular Atrophy
– Viltepso for Duchenne Muscular Dystrophy
– Other medicines used in the treatment of muscular atrophy are recommended by the Ministry of Health and Family Welfare and Department of Pharmaceuticals.
Food delivery apps
The GST Council decided to tax food delivery platforms such as Swiggy and Zomato. Sitharaman informed that 5% GST will be levied at the point where the delivery is made by Swiggy and Zomato. This means that now ordering food online will get costlier.
The finance minister informed that inverted duty structure anomalies for ores and specified metals will be corrected, but the Council has not yet decided on a date for this.
