Finance Minister Nirmala Sitharaman holds press conference after addressing 45th GST Council; Check key highlights here

Finance Minister Nirmala Sitharaman addresses a media briefing on the outcomes of the 45th GST Council meeting.

On Friday, September 17 Finance Minister Nirmala Sitharaman addresses a media briefing on the outcomes of the 45th GST Council meeting at Taj Mahal hotel Lucknow.

GST Council Meeting Updates:

  • GST exemptions have been given on expensive imported non-COVID-19 drugs like Zologensma and Viltetsoon. Concessional rates given to some covid drugs till Dec 2021, There will be no GST on Amphotericin B, Tocilizumab till December 31. Zolgensma and Viltepso: These two are very important drugs which cost something like Rs 16 crores. So the council has decided to grant exemption from GST for these 2, says FM at the 45th GST Council meeting.
  • Transport of export goods by vessels goods are exempted from GST, the exemption is given due to difficulties faced by the exporters in getting a refund of ITC. So the exporters do not suffer due to the COVID-19 pandemic, the exemptions are given for one year, reduction in GST rate on biodiesel (supplied to oil marketing companies for blending with diesel)— from 12% to 5%
  • States which charge a national permit fee for granting permits to good carriage to operate throughout India are exempted from GST.
  • IGST paid at the time of import has been exempted, imports of aircraft and other goods which are imported on lease have been exempted from double taxation.
  • Footwear and textiles will be implemented to correct the inverted duty structure by January 1, 2022
  • GST rates on the pen are 18%, while certain kinds of pens are at GST of 12%.
  • Cess to pay back the compensation loans taken by centre and then transferred to states last fiscal and this fiscal year, that cess will continue till March 2026, beyond June 2022, the cess that will be collected to repay the loans taken by the states, will continue till March 2026.
  • Two GoMs formed today. One will look at rate rationalization-related issues and will submit a report in two months. The second GoM will look into related issues of E-way bills, Fastags, Technology, compliance, and compensation schemes. This GoM will also submit a report in two months.
  • Food is delivery services like Swiggy and Zomato will pay the tax, earlier tax was paid by restaurants.

As it was being decided in the first in-person meeting of the GST Council that various life-saving COVID-19 drugs will be exempted from GST, adding more to it GST Council decided to exempt various other non-covid life-saving drugs from GST. Steps have been taken over by the GST Council to correct the inverted duty scheme on footwear and textiles. Whereas there will be no new tax on Swiggy and Zomato.

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