Lucknow: Union Finance Minister Nirmala Sitharaman today said that this was not the right time to bring petrol and diesel under the Goods and Services Tax (GST) regime. However, the GST Council has extended the concessional rates on Covid-related medicines till December 31, 2021 and provided exemptions to life saving drugs, FM Sitharaman told media on Friday.Also Read - Petrol, Diesel Prices Hiked; Check Latest Fuel Rates in Mumbai, Delhi, Your City

The decisions were taken at the 45th GST Council meeting which was held under the chairpersonship of FM Sitharaman in Lucknow. Finance Ministers of States and UTs and Senior officers from Union Government, and States also attended the meeting. Also Read - RBI Imposes Rs 1 Crore Penalty On Paytm Payments Bank | Here's Why

GST Council on Petrol

GST Council members made it clear they do not want petroleum products to be included under the single tax regime. It was decided, we will report to Kerala High Court that, matter has been discussed and Council felt it was not the time to bring petroleum products under GST, FM Sitharaman said. Also Read - RBI Slaps Rs 1 Crore Penalty on State of India Over Non-Compliance

“There has been lot of media speculation on whether petroleum products will be brought under ambit of the GST. I make it absolutely clear that this came on today’s agenda purely because of the Kerala High Court order where it suggested the matter to be placed before GST Council,” FM said.

GST On Covid Medicines, Other Drugs

  • Concessional GST rates on COVID19 related medicines were announced earlier. The concessions have now been extended till December 31, 2021, said Union Finance Minister Nirmala Sitharaman.
  • Drugs suggested by the Union Health Ministry for treating muscular atrophy, are also exempted from IGST, for import on personal use.
  • There are some life-saving drugs not connected with COVID19, but are very expensive, for which exemptions are being given. There wouldn’t be GST on them – Zolgngelsma and Viltepso costing around Rs 16 crore will now be exempted from GST.
  • Amphotericin B – nil rate, Tocilizumab – nil rate, Remdesivir – 5 per cent , anticoagulants like Heparin – 5 per cent. These concessional rates which were valid till September 30 are now being extended till December 31 2021, FM noted.
  • Similarly, cancer-related drugs – Keytruda – along with similar other medicines used in the treatment of cancer as per Health Ministry or Department of Pharmaceuticals are being recommended that they should come down from 12 per cent to 5 per cent, FM Sitharaman said.
  • GST rate on seven other medicines, which are recommended by Dept of Pharmaceuticals, have also been recommended for reduction from 12 per cent to 5 per cent. That is also extended till December 31, 2021, FM said.

GST Council Decisions Today

  • Meanwhile, GST rate on biodiesel which is supplied to oil marketing companies for blending with diesel have been reduced from 12 per cent to 5 per cent.
  • GST on Railway parts and locomotives and other rail parts under Chapter 86 will be increased from 12 per cent to 18 per cent to correct inverted duty structure .
  • Specified renewable energy devices attract 5 per cent GST now, however all their inputs are taxed at 18 per cent. This inversion leads to embedding of ITC on input services and capital goods, to reduce inversion, GST will be 12 per cent for those specified renewable devices
  • GST on pen parts is 18 per cent, while certain kinds of pens are charged 12 per cent. It has been decided to correct this inversion by making rate on all pens and pen parts to 18 per cent.
  • GST payable on import of aircraft or other goods imported on lease has now been exempted from double taxation This will facilitate domestic industry and aviation sector, these will also allow transfer of goods imported under lease without payment of IGST.
  • Training programmes where government bears 75 per cent or more of the cost shall now be exempt from GST.
  • National Permit Fee charged by states for granting permit to goods vehicles to operate throughout India or in contiguous states is being exempted from GST.
  • Transport of export goods by vessels and air is exempt from GST.
  • GST rate on fortified rice kernels which can be used in schemes like Integrated Child Development Services Scheme has been reduced from 18 per cent to 5 per cent.
  • GST on retro-fitment kits for vehicles used by Divyang or Persons with Disabilities reduced to 5 per cent.

The GST Council had already met twice this year when the panel of finance ministers discussed GST compensation and the borrowing formula offered by the Centre towards compensating states for GST shortfall while also announcing a series of duty relief and easing of compliance measures towards Covid relief.