GST Council Meeting LIVE: Finance Minister Nirmala Sitharaman today chaired the 45th meeting of the Goods and Service Tax Council Council in Lucknow today where it was decided against bringing petrol and diesel under the ambit of GST. In the first in-person meeting of the GST Council, it was decided to extend GST exemption for various life saving covid-19 drugs. Further, the GST Council decided to exempt various other non-covid life-saving drugs from GST. The Finance Minister said that the GST Council has taken steps to correct the inverted duty scheme on footwear and textiles.
Union Budget: Effective implementation of policies should be the focus to aid growth
Earlier tax was paid by restaurants but now aggregators such as Zomato and Swiggy will pay the tax, the GST Council decided. This move would help protect revenue.
Detailed discussion on gig workers like Swiggy, Zomato today. The place where the food is delivered will be the point where tax is collected by the Swiggy and Zomato like services, the finance minister said.
“Two GoMs formed today. One will look at rate rationalisation related issues and will submit a report in two months time. The second GoM will look into related issues of E-way bills, Fastags, Technology, compliance, and compensation schemes. This GoM will also submit report in two months,” the Finance Minister said today.
Finance Minister Nirmala Sitharaman said that the inverted duty scheme on footwear and textiles will be corrected from January next year.
“GST Council discussed bringing petrol and diesel under GST regime as asked by Kerala High court,” Finance Minister said today. The GST Council has decided against putting petrol and diesel under GST.
For import of Aircraft on lease, IGST paid has been exempted, the finance minister said. The move is expected to help the aviation sector.
States which charge a national permit fee to grant a permit to goods carriers to operate throughout India is exempted from GST.
The council had earlier exempted immunosuppressant Tocilizumab and mucomycosis (black fungus) drug Amphotericin B from GST.
Cancer-related drugs to be brought down from 12% GST rate to 5%, finance minister Nirmala Sitharaman announced today.
GST exemption on several life-saving drugs, the Finance Minister said. The FM said that the exemption process earlier was tiring for patients.
Finance Minister begins addressing media to announce GST Council decisions.
Group of Ministers (GoM) to be formed to look at ways of shoring up revenue, GST Council Member from Goa tells CNBC TV18. The Finance Minister will announce the composition of GoM.
“None of the members were in favour of discussing bringing petrol diesel under GST right now,” Mauvin Godinho, GST Council Member Goa told CNBC TV18.
The 45th GST Council meet has reportedly concluded. Finance Minister Nirmala Sitharaman will address the media shortly.
Zomato and Swiggy will come under the Goods and Service Tax, CNBC TV18 reported ahead of Finance Minister’s press briefing.
Finance Minister Nirmala Sitharaman’s press conference has been delayed as the GST Council meet is still in progress.
“Given the magnitude of change and the number of players involved in terms of restaurants, it is important that there is a proper consultation with industry before taking a decision,” said Pratik Jain, Partner, Price Waterhouse & Co, LLP.
The GST Council has said that it not the right stage to consider a discussion on the inclusion of petrol and diesel under GST, CNBC TV18 reported.
While reports suggest Union Government may try and bring petrol and diesel under the GST regime,Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar has said any attempt by the Union government to alter tax structures that adversely impact states’ revenue generation will be opposed, The Indian Express reported.
‘Finance Minister, Nirmala Sitharaman, to address a media briefing on the outcomes of 45th GST Council meeting at 6:30 PM (tentative) in Lucknow today,’ the Ministry of Finance tweeted.
As Union Finance Minister chairs the GST Council, Dalal Street ended with losses, giving up all intra-day gains. Sensex and Nifty had earlier in the day scaled fresh all-time highs.
Finance Minister Nirmala Sitharaman is likely to address the media at 6 PM today to announce various decisions taken by GST council.
In June, the Kerala High Court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the goods and services tax (GST) ambit.
GST council has decided to not levy tax on Amphotericin and Tocilizumab, according to CNBC TV18. Further, the council has decided to levy 5% GST on Remdesivir & 5% on Heparin according to the report.
Of the two options suggested by the panel, the first will require maintaining two books of accounts (sales done through apps and other sales) by small eateries. In the second option, apps will be the deemed restaurant service provider. In this case, restaurants will bill to food delivery apps and collect GST while apps will charge GST on customers.
The GST Council could extend concessions on certain drugs used in the treatment of Covid-19, said CNBC TV18. The GST council had earlier agreed upon concessions to help people fighting the covid-19 battle.
In August, GST revenue collection stood at Rs 1.12 lakh crore. This was lower than the Rs 1.16 lakh crore collected in July but was still better than the year-ago period.
Finance Minister Nirmala Sitharaman and state finance ministers are today meeting for the 45th GST council meeting in Lucknow. This will be the first in-person meeting of finance ministers in almost two years.
The GST Council fitment committee’s recommendation to bring food delivery apps such as Zomato and Swiggy within ambit of restaurant services and make them liable to pay the tax, is aimed at shifting the responsibility from restaurants to apps to make compliance easier and certain. However, the move will likely marginally increase the tax incidence on small restaurants otherwise exempt from GST (annual turnover less than Rs 20 lakh).
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