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‘Fuel, Swiggy, Covid-19’: Highlights from 1st physical GST Council meet in 2 yrs
Finance minister Nirmala Sitharaman said that it was decided that life-saving drugs such as Zolgensma, which is used in the treatment of Spinal-Muscular Atrophy, will be exempted from tax if imported for personal use.
Union finance minister Nirmala Sitharaman on Friday chaired the 45th GST Council meeting that included her counterparts of the Indian states and Union territories (UTs). It was the first physical meeting held since the Covid-19 pandemic, with the last such meeting taking place in December 2019.
The meeting saw discussions on various important topics, including the GST on petrol and diesel as well as food delivery applications coming under its ambit. Following the meeting that went on for several hours, Sitharaman held a press conference where she informed that henceforth, Swiggy and Zomato will pay the GST instead of the restaurants of food joints they pick up the food from.
Here are the key highlights of today’s GST Council meeting:
1. During the press briefing, the finance minister said that the council discussed the issue of GST on petrol and diesel as per the instructions of the Kerala High Court, and the consensus was that now is not the right time for the same.
2. The GST Council also decided that food delivery firms such as Swiggy and Zomato, among others, would be required to collect and pay the tax. Sitharaman, however, clarified that there will be no new tax imposition. Earlier, the tax was paid by restaurants or food corners.
3. Life-saving drugs such as Zolgensma, which costs ₹16 crore each, and Viltepso, used in the treatment of Spinal-Muscular Atrophy, have been exempted from GST when imported for personal use.
4. The Council also decided to extend the existing concessional GST rates on some Covid-19 medicines, including Remdesivir, from September 30 to December 31. Furthermore, GST rates on seven other medicines suggested by the Department of Pharmaceuticals have also been decreased from 12 per cent to 5 five per cent till December 31.
5. Sitharaman informed that the Council has also decided to reduce GST rates on Keytruda medicines used for Cancer treatment from 12 per cent to 5 per cent.
6. Retro fitment kits for vehicles used by persons with special abilities will now have a GST of 5 per cent.
7. The GST Council on Friday decided to correct the inverted duty structure in the footwear and textiles sectors from January 1, 2022, onwards.
8. Sitharaman also informed during the press briefing that GST on biodiesel supplied to oil marketing companies for blending with diesel has been reduced from the current 12 per cent to 5 per cent.
9. The GST Council agreed on the extension of GST exemption on the transport of goods by vessel and air from India to overseas till September 30, 2022.
10. The finance minister informed reporters during the press conference that skill training where the central government bears 75 per cent or more of the expenditure will also be exempted from GST. Presently, GST exemption is only applicable if the Centre funds 100 per cent of the training.
