The Centre and states failed to arrive at a decision on the inclusion of petroleum products and diesel in the GST at the Council’s meet on Friday. Finance Minister Nirmala Sitharaman said that it was not time for including petrol and diesel.
The 45th meeting of the GST Council to, chaired by Finance Minister Nirmala Sitharaman and comprising state finance ministers, is the first physical meeting since the onset of the Covid-19 pandemic. The last such meeting took place 20 months ago on December 18, 2019.
The Council’s agenda included discussion on taxing petrol and diesel under the single national GST tax, extending tax concession to 11 Covid-19 drugs, and review tax rates of over 4-dozen items, like oncology medicine and coconut oil among others.
The discussion on inclusion of petrol and diesel under GST was taken on the direction of the Kerala High Court. The court had directed the matter to be placed before the Council for discussion.
However, the Centre and the states failed to arrive at a decision regarding the inclusion of petrol and diesel under the ambit of GST regime.
REDUCED GST ON COVID DRUGS
The GST Council granted exemptions to certain life-saving drugs and the drugs suggested by health ministry for treating muscular atrophy.
Finance Minister Nirmala Sitharaman said, “We have seen in the last one year and probably earlier that some life-saving drugs, which are not connected with Corona and are very expensive. Exemptions have been given for such drugs.”
She further added, “I am giving the names of two because those two are very expensive drugs – 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.”
The finance minister further added, “Drugs that are suggested by the Ministry of Health for treating muscular atrophy, on the recommendation of Health Ministry and Dept of Pharmaceuticals, are also exempted for IGST on import for personal use.”
GST ON FOOD DELIVERY APPS
The GST Council has fixed levy level for Food-delivery apps like Swiggy and Zomato.
The Council stated that the place of the delivery will be the point where the tax will be collected by the food delivery apps. They will pay GST on it.
Notably, there is no new or extra tax. The tax was earlier payable by the restaurants, now the tax will be paid by the food delivery aggregators.
Moreover, the GST council has also set up a group of minister (GOM) to thrash out contentious crucial issue of compensation for states beyond June 2022.
GOM has been tasked with discussing all issues involved in compensations and compensation cess and has been asked to submit the report to the council in two months.