GST Council Meeting 2021-Petrol, diesel not under GST and other decisions you need to know:-The first meeting of the GST Council, held in Lucknow since the outbreak of the pandemic in March 2020, was chaired by the Finance Minister along with various finance ministers from states and union territories as well as senior officials of the government and tax department. .
GST Council Meeting 2021
The major issues on the agenda were around rationalization of the inverted duty structure.
Know here all the important GST Meeting decisions 2021:
GST Compensation Cess to be increased Finance Minister Nirmala Sitharaman has said that the GST Compensation Cess will need to be increased by March 2026. This is being done for revenue to repay the loans taken by the states to cover the shortfall of the cess in FY21 and FY22, Sitharaman said.
There is a perception that the government will also place a proposal before the states and suggest alternatives as to how the compensation can be extended beyond the prescribed limit, but the states will have to take the same decision.
Scheme on footwear and textiles
So some crucial time will be given to the states to decide which method is best for them. Correction of discrepancies in inverted duty scheme Inverted duty scheme on footwear and textiles to be corrected from January 1, 2022: FM Sitharaman
Increase the GST on railway components, locomotives
UPS and external battery to be treated at par: The council has proposed to increase the GST on railway components, locomotives to 18% from the existing 12%. In the current regime, the GST on UPS is 18%, while that for external batteries is 28%.
GST relief for exported goods extended
GST relief for exported goods extended for one more year Goods transported by air and sea will be exempted from GST for one more year. This is due to difficulties in getting input tax credit refund to exporters, Sitharaman said. National permit fee charged by states for goods vehicles plying across India is being exempted from GST.
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GST exemption on expensive imported drugs
Finance Minister Sitharaman says rate rationalization and extension has been given for GST exemption on expensive imported drugs like Zologensma and Viletso. The FM says that the concessional GST rates on medicines related to COVID,
Which were till 30 September, have now been extended till 31 December. The extension at subsidized rates has been given only for drugs like Remdesivir, but not for medical devices.
State charges a national permit fee for permitting the carriage of goods
The state charges a national permit fee for permitting the carriage of goods. He said that this fee has been exempted from GST. In the past, the GST Council has approved amphotericin B (nil to 5 per cent), tocilizumab (nil from 5 per cent), remdesivir (12 per cent). drank. 5 percent), and anti-coagulants such as heparin (12 percent to 5 percent). The rate of GST on oxygen, oxygen generating equipment and related medical equipment as well as test kits has been reduced from 12 per cent to 5 per cent.
GST Tax Rates on some common items
According April 2021
|0.25%||Cut and semi-polished stones are included under this tax slab.|
|5%||Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab.|
|12%||This includes computers and processed food|
|18%||Hair oil, toothpaste and soaps, capital goods and industrial|
intermediaries are covered in this slab.
|28%||Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks, High-end motorcycles are included here.|
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Various items and their respective cess rates as prescribed from time to time under the GST (Compensation to States) Act, 2017, and are listed below:
Although food items like sugar, tea and coffee are included in the 5% slab, milk is not taxed under the new GST regime. The idea behind this is to ensure that basic food items are available to all but instant food is kept out of this category.
Basic household items like toothpaste and hair oils, which currently attract 28% tax, will be taxed at only 18%.
Sweets will also attract 5% tax.
To ease the pressure on power industries, the tax rate on coal has also been reduced from 11.69% to just 5%. GST also gives a big push to domestic industries as they will be able to get seamless input credit for capital goods. After this reform, the Make in India campaign is ready to flourish.
Apart from other items that enjoy zero GST tax rate, these are the commodities added to the list after 11th June rate revision –
|Hulled cereal grains like barley, wheat, oat, rye, etc.||Bones and horn-cores unworked and waste of these products.||Palmyra jaggery||All types of salt|
|Kajal [other than kajal pencil sticks]||Picture books, colouring books or drawing books for children||Human hair – dressed, thinned, bleached or otherwise worked||Sanitary Napkins|
|Vegetables preserved using various techniques including brine and other preservatives that are unsuitable for immediate human consumption.||Music Books/manuscripts||Dicalcium Phosphate (DCP) of animal feed grade conforming to IS specification No. 5470 :2002||Unit container-packed frozen branded vegetables (uncooked/steamed)|
5% Tax Slab
Given below are the items that have been added to the 5% GST tax rate slab along with the other existing items-
|Cashew nuts/cashew nuts in shell||Ice and snow||Bio gas||Insulin||Marble rubble|
|Aggarbatti and Kites||Accessories/parts for carriages designed for differently-abled individuals||Coir mats, matting and floor covering||Pawan Chakki that is Wind-based Atta Chakki||Natural cork|
|Postage or revenue stamps, stamp-postmarks, first-day covers, etc.||Numismatic coins||Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability||Fly-ash blocks||Walking sticks|
12% Tax Slab
After the GST council meeting on 11th June, the following items were added to the 12% GST rates category-
|Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly||Ketchups, sauces and mustard sauce but excluding curry paste, mayonnaise and salad dressings, mixed condiments and mixed dressings||Bari made of pulses including mungodi||Menthol and menthol crystals, peppermint, fractionated/de-terpenated mentha oil, dementholised oil, Mentha piperita oil and spearmint oil||All diagnostic kits and reagents|
|Plastic beads||Exercise books and note books||Glasses for corrective spectacles and flint buttons||Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs||Fixed Speed Diesel Engines|
|Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.||Intraocular lens||Corrective spectacles||Playing cards, chess board, carom board and other board games, like ludo, etc.||Debagged/roughly squared cork|
|Items manufactured from natural cork||Agglomerated cork|
18% Tax Slab
The items mentioned below have been added to the 18% GST tax rate slab among the other existing items-
|Kajal pencil sticks||Dental wax||Plastic Tarpaulin||School satchels and bags other than of leather or composition leather; toilet cases, Hand bags and shopping bags of artificial plastic material, cotton or jute; Handbags of other materials excluding wicker work or basket work||Headgear and parts thereof|
|Precast Concrete Pipes||Salt Glazed Stone Ware Pipes||Aluminium foil||All goods, including hooks and eyes||Rear Tractor tyres and rear tractor tyre tubes|
|Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle||Weighing Machinery other than electric or electronic weighing machinery||Printers other than multifunction printers||Ball bearing, Roller Bearings, Parts & related accessories||Transformers Industrial Electronics|
|Electrical Transformer||Static Converters (UPS)||CCTV including CCTV with video recorders||Set top Box for TV||Computer monitors not exceeding 17 inches|
|Electrical Filaments or discharge lamps||Winding Wires, Coaxial cables and Optical Fiber||Perforating or stapling machines (staplers), pencil sharpening machines||Baby carriages||Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers)|
|Bamboo furniture||Swimming pools and paddling pools||Televisions/Monitors (upto 32 inches)||Power banks powered by Lithium-ion batteries||Sports goods, games consoles and related items with HS code 9504|
|All items with HS code 8483 including gear boxes, transmission cranks and pulleys||Used or retreaded pneumatic rubber tires|
28% Tax Slab
The council meeting was held to “lower” tax rates on certain items based on the customer’s choice. Therefore, no additional elements were added to the slab with the highest GST rates of 28%.