Petrol-diesel will not be included in GST right now, tax on biodiesel has been reduced to 5 percent

Finance Minister Nirmala Sitharaman said on Friday that the Goods and Goods Services Tax (GST) Council has decided not to bring petrol and diesel under the purview of GST for the time being. In a press conference after the 45th meeting of the GST Council here, he also said that the GST rate on biodiesel mixed with diesel has been reduced from 12 per cent to five per cent. Giving information about the decisions taken in the meeting of the GST Council, Sitharaman said, “The GST Council is of the view that this is not the time to bring petroleum products under the ambit of Goods and Services Tax.”

He said that the GST Council has extended the time of concessional GST rates applicable on medicines used in Kovid treatment till December 31, 2021. The council has also decided to reduce the tax rate on drugs used in the treatment of cancer from 12 per cent to five per cent. In addition, it has been decided to waive off the national permit fee levied by the states for the operation of freight vehicles.

GST on apps like Swiggy and Zomato

Sitharaman said that the council has agreed to fix the inverse duty structure (lower duty on raw materials and higher duty on finished goods) on footwear and clothing from January 1, 2022. He said that it has been decided to levy GST at a single rate of 18 per cent on pens while 12 per cent Goods and Services Tax on specific renewable energy equipment. In another decision taken by the council, it has been said that e-commerce entities like Swiggy and Zomato will pay GST on restaurant service supplied through them, which will be collected at the point of delivery.

The concessional tax regime on certain medical equipment will end on September 30. In addition, the council reduced the GST on rice kernels containing drugs and nutrients related to cancer treatment from 18 percent to 5 percent. Medicines used in spinal muscular atrophy like Jolgensma and Viltepso have been exempted from GST, which cost crores of rupees.

Physical meeting of GST Council held after 20 months

The Finance Minister said that leased aircraft have been exempted from I-GST (Integrated GST). The council has decided to levy GST at a single rate of 18 per cent on all types of pens and 12 per cent Goods and Services Tax on specific renewable energy devices.

Sitharaman said that the council has agreed to fix the inverse duty structure (lower duty on raw materials and higher duty on finished goods) on footwear and clothing from January 1, 2022. This is the first meeting of the council being held face to face after the Kovid-19 epidemic. The last such meeting was held 20 months ago on 18 December 2019. Since then the council meeting was being held only through video conference.

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