45th Goods and Services Tax (GST) meeting was held in Lucknow on 17th September, 2021. It was the first physical GST council meet after 20 months due to COVID-related restrictions enforced in the country.
The GST council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services including changes related to GST law and procedure:
- Most awaited issue related to bringing petrol,diesel, fuel under GST ambit not even discussed in the meeting. As, all states unanimously opposed initiating talks on inclusion of petrol and diesel under GST. Council unanimously felt this is not the stage to even consider a discussion on the inclusion of petrol and diesel under GST.
- GST Council has extended the ‘GST concession rate applicable period’ on drugs required for the treatment of COVID-19, from 30th September till 31st December, 2021.
- No GST on Tocilizumab and Amphotericin B. While, Remdesivir and anti-coagulants such as Heparin have been kept under 5% slab rate.
- GST Council has cut Tax Rates on Medicines used in cancer Treatment from 12% to 5%
- Life-saving drugs Zolgensma and Viltepso has been exempted from GST when imported for personal use.
- GST Council has reduced GST on Fortified Rice Kernels from 18% to 5% for schemes like Integrated Child Development Services (ICDS).
- GST has been imposed on Retro fitment kits for vehicles used by disabled at 5%.
- 18% GST has been imposed on Railway parts, locomotives and other goods in chapter 86.
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45th GST Council Meeting Today, Petrol, Diesel May Be Brought Within Ambit