Recommendations of 45th GST Council Meeting – Several people centric decisions taken by GST Council
GST
Dated:- 17-9-2021
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 31st December 2021
* GST rates on 7 other medicines recommended by Department of Pharmaceuticals reduced from 12% to 5% till 31st 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 on Goods and Services
Counc
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GST rate to 5% on more Covid-19 treatment drugs, up to 31st 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.
18%
5%
3.
Medicine Keytruda for treatment of cancer
12%
5%
4.
Biodiesel supplied to OMCs for blending with Diesel
12%
5%
5.
Ores and concentrates of metals such as iron, copper,
aluminum, zinc and few others
5%
18%
6.
Specified Renewable Energy Devices and parts
5%
12%
7.
Cartons, boxes, bags, packing containers of paper etc.
12%/18%
18%
8.
Waste and scrap of polyurethanes and other plastics
5%
18%
9.
All kinds of pens
12%/18%
18%
10.
Railway parts
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rought under special composition scheme with threshold limit of ₹ 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
D. Correction in Inverted Duty structure in Footwear and Textiles sector
GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, 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.
Descri
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ervices provided through them
* transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
* restaurant services provided through it with some exceptions [w.e.f. 1st 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 to GST rate on Goods
* Pure henna powder and paste, having no additives, attract 5% GST rate under Chapter 14.
* Brewers' Spent Grain (BSG), Dried Distillers' Grains with Soluble [DDGS] and other such residues, falling under HS code 2303 attract GST at the rate of 5%.
* All laboratory reagents and other goods falling under heading 3822 attract GST at the rate of 12%.
* Scented swe
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* 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%].
* Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.
H. Clarification in relation to GST rate on services
* Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of 'Scholarships for students with Disabilities” is exempt from GST
* Services by cloud kitchens/central kitchens are covered under 'res
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t 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 major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.
III. Recommendations relating to GST law and procedure
I. Measures for Trade fac
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n 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”;
* Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services. A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country are to be treated as separate legal entities and would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for considering a supply of service as export of services;
* Clarification in respect of certain GST related issues:
* W.e.f. 01.01.2021, the date of issuance of debit note (and not the
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ation 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 registration has been obtained under GST.
* Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
* Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.
K. GST Council has also recommended amendments in certain provisions of the Act and Rules.
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Note: The recomme
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