Goods and Services Tax – GST Dated:- 17-9-2021 – News – Posted On: 17 SEP 2021 9:16PM by PIB Delhi Life-saving drugs Zolgensma and Viltepso used in treatment of Spinal-Muscular Atrophy exempted from GST when imported for personal use Extension of existing concessional GST rates on certain COVID-19 treatment drugs upto 31 st December 2021 GST rates on 7 other medicines recommended by Department of Pharmaceuticals reduced from 12% to 5% till 31 st December 2021 GST rate on Keytruda medicine for treatment of cancer reduced from 12% to 5% GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5% GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5% Council also recommends major changes in GST rates and scope of exemption on Services Recommends several clarifications in relation to GST rates
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namely- Amphotericin B -nil Remdesivir 5% Tocilizumab -nil Anti-coagulants like Heparin 5% 2. Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to 31 st December, 2021, namely- Itolizumab Posaconazole Infliximab Favipiravir Casirivimab Imdevimab 2-Deoxy-D-Glucose Bamlanivimab Etesevimab B. Major recommendations on GST rate changes in relation to Goods [w.e.f 1.10.2021 unless otherwise stated] S. No. Description From To GST rate changes 1. Retro fitment kits for vehicles used by the disabled Appl. rate 5% 2. Fortified Rice Kernels for schemes like ICDS etc.
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pens 12%/18% 18% 10. Railway parts, locomotives other goods in Chapter 86 12% 18% 11. Miscellaneous goods of paper like cards, catalogue, printed material (Chapter 49 of tariff) 12% 18% 12. IGST on import of medicines for personal use, namely Zolgensma for Spinal Muscular Atrophy Viltepso for Duchenne Muscular Dystrophy Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals. 12% Nil 13. IGST exemption on goods supplied at Indo-Bangladesh Border haats Appl. rate Nil
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r, as was discussed in earlier GST Council Meeting and was deferred for an appropriate time, will be implemented with effect from 01.01.2022. E. In terms of the recent directions of the Hon ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage. F. Major GST changes in relation to rates and scope of exemption on Services [w.e.f 1.10.2021 unless otherwise stated] No. Description From To 1. Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022. – Nil 2. Services by way of
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12% 18% 7. Exemption on leasing of rolling stock by IRFC to Indian Railways withdrawn. 8. E Commerce Operators are being made liable to pay tax on following services provided through them transport of passengers, by any type of motor vehicles through it [ w.e.f. 1 st January, 2022] restaurant services provided through it with some exceptions [ w.e.f. 1 st January, 2022] 9. Certain relaxations have been made in conditions relating to IGST exemption relating to import of goods on lease, where GST is paid on the lease amount, so as to allow this exemption even if (i) such goods are transferred to a new lessee in India upon expiry or termination of lease; and (ii) the lessor located in SEZ pays GST under forward charge. G. Clarification in relation
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long with UPS Systems/ Inverter attract GST rate applicable to batteries [ 28% for batteries other than lithium-ion battery] while UPS/inverter would attract 18%. GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, during the period from 1.7.2017 to 31.12.2018, in the same manner as has been prescribed for the period on or after 1 st January 2019. Due to ambiguity in the applicable rate of GST on Fibre Drums, the supplies made at 12% GST in the past have been regularised. Henceforth, a uniform GST rate of 18% would apply to all paper and paper board containers, whether corrugated or non-corrugated. Distinction between fresh and dried fruits and nuts is being clarified for application of GST rate of nil and 5%/12% respectively; It is being clarified that all pharmaceutical goods falling under heading 3006 attract GST at the rate of 12% [ not 18%]. Essentia
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racted GST rate of 18% w.e.f. 01.07.2017. Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc. Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products. II. On the issue of compensation scenario, a presentation was made to the Council wherein it was brought out that the revenue collections from Compensation Cess in the period beyond June 2022 till April 2026 would be exhausted in repayment of borrowings and debt servicing made to bridge the gap in 2020-21 and 2021-22. In this context various options, as have been recommended by various committees/ forums were presented. The Council deliberated at length on the issue. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for
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res shall furnish ITC-04 annually. In the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50 (3) of the CGST Act to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on ineligible ITC availed and utilized and not on ineligible ITC availed . It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large: Clarification on scope of intermediary services ; C
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y those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act. J. Measures for streamlining compliances in GST Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration . Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B . Refund to be disbursed in the bank account, which is linked with same PAN on which reg
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