GST Council taken people-friendly decisions,Sitharaman

GST Council decided to extend the concessional rates on drugs used in COVID-19 treatment till December 31 this year. The previous deadline was September 30. The 45th meeting of the GST Council, held in Lucknow on Friday,failed to arrive at a decision on the inclusion of petrol and diesel under the ambit of Goods and Services Tax (GST). Finance minister Nirmala Sitharaman stated that the Goods and Services Tax (GST) Council discussed the topic of inclusion of petrol and diesel under the tax structure after the Kerala High Court order. "On the direction of court it was brought on to table but members spoke very clearly they do not want it to be included in GST," Ms Sitharaman said. "This will be reported to the high court as the GST Council felt it was not the time to bring petroleum products under the GST," she added. In June, the Kerala High Court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the GST ambit.  The GST Council disposed off the proposal regarding inclusion of petrol and diesel under the GST regime, saying that it is not possible to do so right now, Delhi Dy CM Manish Sisodia said.

Sitharaman said that the council have taken quite a few people-friendly decisions. I am very happy that some of them are long-pending. GST exemption has been given on expensive imported drugs like Zologensma and Viltetso, which are not for Covid, the minister said. The minister also announced that the GST rate on bio-diesel for blending with diesel (used by oil marketing companies) has been reduced from 12% to 5%.  Sitharaman stated that all pens will attract single GST rate of 18%. And, 12% GST will be applied to specified renewable sector devices, she added. 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.