New Delhi | Jagran Business Desk: The Goods and Services Tax (GST) Council on Friday extended the applicability of concessional GST rates on Covid-19-related medicines till December 31. The GST Council also decided to charge food delivery platforms such as Swiggy and Zomato a tax.
Meanwhile, the Council, which comprises the Union finance minister and her state counterparts, decided to continue keeping petrol and diesel out of the GST purview as subsuming the current excise duty and VAT into one national rate would impact revenues.
Briefing the media after the 45th meet of the GST, Union Finance Minister Nirmala Sitharaman said GST has been exempted on muscular atrophy drugs like Zolgensma and Viltepso, which cost crores of rupees. It extended the period of concessional GST rates on certain COVID-related drugs by three months till December 31 but decided not to give the same benefit to medical equipment.
"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 Cr will now be exempted from GST", she said.
"Drugs that are suggested by the Ministry of Health for treating muscular atrophy, on the recommendation of Health Ministry and Dept of Pharmaceuticals, are also exempted for IGST on import for personal use", she added.
The concessional regime for certain medical equipment will end on September 30. Sitharaman said 5 per cent GST will be levied at the point where the delivery is made by Swiggy and Zomato. Also, the Council cut GST rate from 12 per cent to 5 per cent on cancer-related rugs and on fortified rice kernels to 5 per cent from 18 per cent.
GST rate on bio-diesel for blending in diesel was reduced to 5 per cent from 12 per cent, while the national permit fee for goods carriage has been exempt from GST. Import of leased aircraft have also been exempted from payment of I-GST, the finance minister said. "GST Council felt it was not the right time to include petroleum products in GST," she said.
The panel decided to levy 18 per cent GST on all sorts of pens. Specified renewable sector devices will be charged 12 per cent tax. GST Council also recommended new footwear and textile rates from January 1.
(With Agency Inputs)
Posted By: Talibuddin Khan