Several people centric decisions taken by GST Council

Speed Post News Network

New Delhi : The GST Council’s 45^th meeting was held on September 17, 2021, at Lucknow, UP,  under the chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman. The Council decided to set up 2 GoMs to examine issue of correction of inverted duty structure for major sectors and for using technology to further improve compliance, including monitoring

The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure:

Life-saving drugs Zolgensma and Viltepso used in treatment of Spinal-Muscular Atrophy has exempted from GST when imported for personal use. The existing concessional GST rates on certain Covid-19 treatment drugs has been extended up to 31^st December 31, 2021. GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5%, according to a PIB release.

The GST rates on 7 other medicines recommended by Department of Pharmaceuticals has been reduced from 12% to 5% till December 31, 2021. GST rate on Keytruda medicine for treatment of cancer has been reduced from 12% to 5%. GST rates on Retro fitment kits for vehicles used by persons with special abilities has been reduced too.

I. Recommendations relating to GST rates on goods and services :

A. COVID-19 relief measure in form of GST rate concessions

1. Extension of existing concessional GST rates (currently valid till September 30, 2021) on following Covid-19 treatment drugs, up to  December 31, 2021, namely-

1. Amphotericin B -nil
2. Remdesivir – 5%
3. Tocilizumab -nil
4. Anti-coagulants like Heparin – 5%

2. Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to  December 31, 2021, namely-

1. Itolizumab
2. Posaconazole
3. Infliximab
4. Favipiravir
5. Casirivimab & Imdevimab
6. 2-Deoxy-D-Glucose
7. Bamlanivimab & Etesevimab
8. C. Other changes relating to GST rates on goods
   1. Supply of mentha oil from unregistered person has been brought under reverse charge. Further, Council has also recommended that exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit.

    

   2. Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.