GST Council Has Decided To Extend The Concessional Rates

GST Council has decided to extend the deadline for concessional rates on medicines related to covid-19.

Concession on Covid medicines will continue, cancer medicines also are made cheaper.

In several decisions, the GST Council has decided to extend the deadline for concessional rates on medicines related to covid-19.

Briefing the media after the conclusion of the 45th meeting of the Council and the first meeting since the onset of the covid-19 pandemic, Sitharaman said, “We have taken some people-friendly decisions.”

She said that the deadline for duty exemption and concessional rates for COVID and related drugs has been extended from 30 September to 31 December 2021.

Sitharaman said the council has given tax exemption on drugs for treating muscular atrophy imported only for personal use and reduced duty on drugs for the treatment of cancer from 12 percent to 5 percent.

On the issue of the inclusion of petroleum products in GST, he said that most of the members are currently opposing the idea.

Sitharaman said the issue was discussed in the meeting, as it was added to the agenda at the last minute based on the order of the Kerala High Court.

However, the council members did not find the current phase as an appropriate time to bring petroleum products under the purview of GST, she added.

It was widely speculated that such a move could be initiated to bring down the record high prices of petrol and diesel.

In addition, the Council has exempted the import of leased aircraft and export of goods by ship or air from GST till September 30, 2022.

Further, the rates on bio-diesel supplied to OMCs for blending with diesel have been reduced to 5 percent.

However, the council increased the GST on railway parts, locomotives, and other goods from 12 percent to 18 percent. In addition, all types of pens and their parts will be taxed at a uniform rate of 18 percent.