Decision on tax cuts on COVID-19 items, vaccines by June 8: Govt

India / Decision on tax cuts on COVID-19 items, vaccines by June 8: Govt
India - Decision on tax cuts on COVID-19 items, vaccines by June 8: Govt
New Delhi: The goods and services tax (GST) council on Friday put off key decisions including the widely anticipated tax concessions on Covid-19 related supplies such as vaccines, oxygen concentrators and medicines due to lack of consensus. But it extended the compliance-related relief to taxpayers.

The issue of GST rates on vaccines and other Covid-related supplies will be reviewed by a Group of Ministers (GoM). A report will be submitted by June 8.

“As a Council, we are responsible to see how this reaches the end user. As there were differing views, a group of ministers will go into details and then decide,” said finance minister Nirmala Sitharaman after the meeting.

On Delhi High Court’s directive, the Council also decided to allow full integrated GST (IGST) waiver on import of specified Covid-19 goods such as medical oxygen, oxygen concentrators, etc till August 31, even if done on payment basis for donation purpose. In view of the rising black fungus cases, IGST exemption has also been extended to Amphotericin B.

The Centre has proposed continuing with back to back loans to states to meet compensation cess shortfall in FY21 to the tune of Rs 1.58 trillion. However, some states objected to the proposal.

The matter pertaining to the extension of compensation period beyond June 2022 will be taken up in a separate Council meeting in the next two-three months. The correction of inverted duty on textiles and footwear was also deferred with several states raising objections over the timing of such a move, especially when businesses are suffering due to the second Covid-19 wave.

The Council extended relief to small taxpayers through an amnesty scheme. Late fee has also been rationalised for future tax periods. For taxpayers not furnishing GST returns from July to April 2021, late fee has been capped at a maximum of Rs 500 for those who do not have any tax liability and Rs 1000 per return for others. It has also granted relief on annual returns and reconciliation statement filing for small and medium businesses.

The Council, which met after a gap of over seven months, saw heated exchanges over the GST relief on Covid-19 related supplies, with at least nine states pressing for zero-rating the items or charging a miniscule tax of 0.1 per cent to allow input tax credit for manufacturers, while three others proposed a lower rate of 5 per cent GST. The fitment panel, which recommends rate changes to the Council, had proposed a rate reduction on medical grade oxygen, oxygen concentrators, pulse oxymeters and Covid-19 testing kits to 5 per cent from 12 per cent. It had proposed no change in rates for other items including vaccines, which are taxed at 5 per cent.

Disclaimer

अपनी वेबसाइट पर हम डाटा संग्रह टूल्स, जैसे की कुकीज के माध्यम से आपकी जानकारी एकत्र करते हैं ताकि आपको बेहतर अनुभव प्रदान कर सकें, वेबसाइट के ट्रैफिक का विश्लेषण कर सकें, कॉन्टेंट व्यक्तिगत तरीके से पेश कर सकें और हमारे पार्टनर्स, जैसे की Google, और सोशल मीडिया साइट्स, जैसे की Facebook, के साथ लक्षित विज्ञापन पेश करने के लिए उपयोग कर सकें। साथ ही, अगर आप साइन-अप करते हैं, तो हम आपका ईमेल पता, फोन नंबर और अन्य विवरण पूरी तरह सुरक्षित तरीके से स्टोर करते हैं। आप कुकीज नीति पृष्ठ से अपनी कुकीज हटा सकते है और रजिस्टर्ड यूजर अपने प्रोफाइल पेज से अपना व्यक्तिगत डाटा हटा या एक्सपोर्ट कर सकते हैं। हमारी Cookies Policy, Privacy Policy और Terms & Conditions के बारे में पढ़ें और अपनी सहमति देने के लिए Agree पर क्लिक करें।