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Revisions To GST Rates: A List Of All Items In 18% Slab
A number of goods and commodities saw their GST rates revised during the 45th GST Council Meeting on Friday in Lucknow. It's also worth noting that the GST Council, In relation to GST law and processes, Nirmala Sitharaman agreed to extend the present concessionary GST rates on the supply of goods and services.
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A number of goods and commodities saw their Goods And Service Tax rates revised during the 45th GST Council Meeting on Friday in Lucknow. It's also worth noting that the Goods And Service Tax Council, In relation to Goods And Service Tax law and processes, Nirmala Sitharaman agreed to extend the present concessionary Goods And Service Tax rates on the supply of goods and services.
One such significant development was the introduction of Goods And Service Tax rate discounts for Covid-19 therapy medications till December 31, 2021. The council also decided that now was not the ideal moment to include gasoline and diesel in the Goods And Service Tax, putting to rest the fears and rumours that had been swirling around the subject leading up to the meeting.
The outcome of the Goods And Service Tax council meeting was more or less what was predicted, with no big surprises. The refusal of states to accept bringing petrol and diesel under Goods And Service Tax was predicted, considering that VAT on these products is a substantial source of revenue for states, DVS Advisors LLP's founder and managing partner, Divakar Vijayasarathy.
Take a look at the main topics that were considered at the 45th Goods And Service Tax meeting on September 17th.
1) Medicine Price Reduction
Finance Minister Nirmala Sitharaman stated on Friday that the Goods And Service Tax Council had resolved to grant a tax break for life-saving pharmaceuticals. Furthermore, until December 31, there will be no Goods And Service Tax on Amphotericin B and Tocilizumab. From September 31, the reduced GST rates on Covid-19-related pharmaceuticals have been extended until December 31. There will be no additional discounts on medical equipment, though.
The Goods And Service Tax Council also approved a proposal to reduce the Goods And Service Tax on seven additional medications from 12 per cent to 5 per cent until December 31, 2021. Itolizumab, Posaconazole, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab, 2-Deoxy-D-Glucose, and Favipiravir are the drugs in question, according to reports.
2) Goods And Service Tax on Petrol:
Not the Right Time The Goods And Service Tax Council met on Friday to consider bringing gasoline and diesel under Goods And Service Tax. The Kerala High Court had already issued an order stating that, in light of the rising prices, petrol and diesel should be included in Goods And Service Tax. This was the motivation for the 45th Goods And Service Tax Council meeting to take up the issue. Several states have objected to the inclusion of vehicle fuels in the Goods And Service Tax, according to the finance minister.
It was not the ideal time, according to Sitharaman, to bring gasoline within the Goods And Service Tax umbrella.
The Goods And Service TaxCouncil agreed that now was not the right time to bring petroleum products and natural gas under the Goods And Service Tax ambit, which was contrary to public expectations, and given that most States strongly opposed this proposition, it appears that these goods will not be subsumed in Goods And Service Tax anytime soon, said Rajat Bose, the partner at Shardul Amarchand Mangaldas & Co.
3) States are compensated
Beyond June 2022, there would be no new Goods and Service Tax Compensation for states stated Nirmala Sitharman on Friday. The Goods And Service Tax (Compensation to States) Act specifies a five-year compensation period, which will end in June 2022, according to the finance minister.
She stated that the compensation cess, which will be collected until March 2026, will be utilised to repay the interest and principal on the Rs 2.69 lakh crore total borrowed by the Centre.
The prolongation of the compensation cess fee till March 2026, according to Rajat Bose, will have an impact on consumers because the money will be collected from them.
4) Swiggy and Zomato Into Goods And Service Tax, the Goods and Service Tax (GST) Council have been debating whether to bring e-commerce operators under the Goods And Service Tax scope for providing certain services, according to the finance minister. For offering the following services, e-commerce companies will be required to pay tax. a) Passenger transportation using any sort of motor vehicle; b) Restaurant services supplied via it, with some exclusions. For supplies made by them, food delivery aggregators like Zomato and Swiggy would have to pay Goods And Service Tax. The adjustments will take effect on January 1, 2022, and will allow e-commerce businesses to make
Goods And Service Tax would be imposed at the point of delivery for e-commerce providers Swiggy and Zomato on restaurant services provided through them, the finance minister said.
The formation of two ministerial groups
The prolongation of the compensation cess fee till March 2026, according to Rajat Bose, will have an impact on consumers because the money will be collected from them. From the aspect of revenue enhancement, one group will look into the issue of correcting inverted duty structures for significant sectors, rationalising rates, and reviewing GST exemptions
Another group will consider methods to use technology to improve compliance, such as improved e-way bill systems, e-invoices, FASTag data, and upgrading the institutional process for information sharing and coordinated enforcement actions by the Center and the states. Both parties have been given a two-month deadline to produce a report.
On the plus side, the Goods And Service Tax Council has corrected the inverted duty structure for several industries, which had been a long-standing issue.
From January 1, 2022, an inverted duty scheme on footwear and textiles would be reversed, according to Sitharaman. Specific renewable gadgets will now be subject to a 12 per cent GST rate, whereas pens will now be subject to a single 18 per cent Goods And Service Tax rates