Finance Minister Nirmala Sitharaman was addressing the media on the outcomes of 45th GST Council Meeting at 6.30 pm today.
Have taken people-friendly and long-pending decisions taken today. Two drugs: Zolgensma and Viltepco--which are probably costing Rs 16 crore. GST Council has decided to grant GST for these two drugs.
Over and above this, drugs suggested by Ministry of Health for muscular atrophy has been exempted from IGST for personal use.
The concessional GST rates on corona-related medicines extended till December 31, 2021 from September 30,2010.
GST rates on seven other medicines recommended by pharmaceutical to 5 percent till 31 December
Cancer drugs like Keytruda and other medicines for use in cancer have been recommended to 5 percent from 12 percent.
GST rate on retrofitment kits used by the young have been reduced to 5 percent.
GST rate on 45 rice kernels can be used for ICDS reduced to 5 percent from 18 percent
GST rate on bio diesel supplied to OMCs for blending with diesel to 5 percent from 12 percent.
Transport of exports goods by vessel and air exempted given due to difficulties faced to get ITC refunds by exporters. Although the portal is quite stabilised, due to post-pandemic stiatiuon extneded to one more year.
State permit fees for granting goods carriages to operate throughout India or contiguous states is exempted from GST.
Training progrmes funded wholly by Central govt or state govt is fully exempted. Small fees asked .
IGST on imports of aircrafts on lease are exempted from double taxation. It will faciiitate domestic industry and aviation sector. These will allow for import of good wihtout IGST. This exemption will be allowed for those lessors located in SEZs who pays GST under forward charges.
Inverted Duty Structure Correction
The Council decided that GST rate changes to hae inerted duty structure correction in footwear and textiles sector, as discussed in GST Council and was deferred (corrections done only on mobile phones). GST Council has agreed to implement from January 1, 2022.
Ores, specified metals: rates on services on royalty that constitues a substantial portion, but not decided on dates yet.
GST rate on pen parts is 18 percent while certain pens is 12 percent. It is being corrected and uniform 18 percent. THis is done so that easy to seek refunds.
Energy devices attract 5 percent GST--metals, plastics, chemicals, etc attract 18 percent. Hence an inverted rate structure to claim refunds ITC. To reduce inversion, therefore, it is recommeneded to presribe GST at 12 percent on those specified renewable devices. It will help domestic manufacturing and Atma Nirbhar Bharat.
Railway parts, locomotives and other parts of railways that fall under Chapter 86. It will be increased from 12 percent to 18 percent to correct the inversion.
Speculation on fuel under GST: This item came on agenda on today's agenda purely due to High Court of Kerala order. The court had suggested the matter be placed before GST Council. Members said they would not want it to be included in GST. It was also clearly asked how we will report to the Court on this matter: It was decided by the Council that we will go back to the Court.