Petrol and Diesel not to come under GST regime
Finance Minister Nirmala Sitharaman has said that the GST Council has turned down a proposal to bring petrol and diesel under the ambit of GST. Explaining the stance of the GST council on the issue, she said the proposal to bring the petroleum products under GST was brought before the Council following a Kerala High Court order but States turned down this motion. The GST Council has decided to report back about it to the court. At present, Crude Oil, Natural Gas, Diesel, Petrol, and Aviation Turbine Fuel are out of the GST umbrella.
Finance Minister said that reduced GST rates on COVID medicines have been extended till 31st December from 30th September. Ms Sitharaman said, Zolgensma and Viltepso are two very expensive Life saving drugs which cost around 16 crore rupees. She said the council has decided to grant exemption from GST for these two drugs. Some drugs suggested by Ministry of Health have also been exempted.
The Council also reduced GST from 12 to 5 percent on cancer related drugs and seven other medicines. GST was also reduced on bio diesel from 12 to 5 percent.
GST on retro-fitment kits for vehicles used by Divyangs has been reduced to 5 percent. GST rate on fortified rice kernels which can be used in schemes like Integrated Child Development Services Scheme has been reduced from 18 percent to 5 percent.
Finance Minister said, some decisions have been taken on import of aircraft or other goods on lease to avoid double taxation. In order to reduce inversion and help domestic manufacturing, 12 per cent GST has been recommended on specified renewable energy devices which will help the Atmnirbhar Bharat initiative. The Council also exempted national permit fee charged by states for operation of goods carriage from GST.
Ms Sitharaman said that the council has decided to form 2 Group of Ministers (GoMs). While one GoM will be looking at rate rationalisation issues, another GoM will look into related issues of e- way bills, fast tags, technology issues, compliances and composition schemes. The Finance Minister said, both GoMs will come back with the analysis within 2 months.