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GST Council Meeting Highlights: 5% GST levied on food delivery apps; not the right time to include petrol, diesel, says FM

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GST Council meeting highlights: The all-powerful GST Council on Friday decided to charge food delivery platforms such as Swiggy and Zomato a tax even as it extended concessional tax rates on certain COVID-19 drugs by three months till December 31. 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. Here are the latest updates from the GST Council meeting today:

GST Council Meeting Highlights: 5% GST levied on food delivery apps; not the right time to include petrol, diesel, says FM
  • Food aggregator apps like Zomato, Swiggy to pay GST on restaurant services: FM Nirmala Sitharaman

    The Goods and Services Tax (GST) Council has decided that food aggregator apps, which will be collecting the tax at the final point of delivery, will pay the GST on restaurant services, Union Finance Minister Nirmala Sitharaman announced on Friday. Read here

  • Saket Patawari, Executive Director–Indirect Tax, Nexdigm on non-inclusion of petrol, diesel

    It also does not come out as a surprise that the States have unanimously voted to keep petroleum products outside the scope of GST considering the huge implications it could have on states’ revenue. However, it would have been worthwhile if the Council members had at least agreed to the constitution of the Panel to lay a roadmap for ultimately including these products under GST.

  • Click here to read the key highlights of 45th GST Council meet chaired by Finance Minister Nirmala Sitharaman

  • Divakar Vijayasarathy, Founder &  Managing Partner, DVS Advisors LLP, on GST Council meet

    The outcome of GST council meeting is more on expected lines without any major surprises. The fact that states are not going to accept bringing in petrol and diesel under GST was on expected lines, given the fact that VAT on these products are major source of revenue for the states. Levy of GST on SWIGGY and Zomato has been referred to GOM which seems to be the right approach since the same requires careful consideration due to the fact that the decision could impact the employment of a large part of the population. Extention of cess till 2026 settles at least one pending issue but the fact that the minister has highlighted that the extension would only help in repayment of loan borrowed in 2020 - 21 & 21 - 22, indicates a possibility of further extension to recover the total shortfall in revenue

  • Mahesh Jaising, Partner, Deloitte India, on Intermediary services

    "The announcement by the GST Council today to issue a fresh Circular to clarify the ‘intermediary’ position is surely a much awaited & welcome one. One hopes that the Government issues the circular with immediate effect to address the issue that has been plaguing the industry at large and impacting exports.  Having said that it will be important to read the fine print and see how the clarifications help the industry."

  • Transport of export goods by vessels&air is exempt from GST till 30 Sept. This exemption was given because of difficulties being faced by exporters in getting a refund of ITC(Input Tax Credit)due to technical issues on GST portal. This exemption is being extended by 1 more year: FM

  • GST rate on biodiesel which is supplied to oil marketing companies for blending with diesel have also been reduced from 12% to 5%

  • E-commerce operators Swiggy, Zomato to pay GST on restaurant service supplied through them; tax to be charged at point of delivery: FM

  • GST Council Has Made two Groups of Ministers

     

    Finance Minister said that two groups of ministers will be constituted to look into certain changes in the GST regime. 

    a) One group will be looking at rate rationalisation issues and submit a report in two months. 

    b) The second group will look into related issues of e-way bills, fastags, technology, compliance, composition schemes. They, too, will submit a report in 2 months.

  • Pens to attract single GST rate of 18 pc; 12 pc GST on specified renewable sector devices: FM

  • Not the right time to include petrol, diesel under GST, says FM

  • GST Council exempts national permit fee charged by states for operation of goods carriage: FM Sitharaman

  •  12% GST will be applicable on specific renewable devices, says FM Sitharaman 

  •  Inverted duty scheme on footwear and textiles will be corrected from January 1, 2022, says FM Sitharaman.

  • We have seen in the last one year and probably earlier that some life-saving drugs, which are not connected with Corona and are very expensive. Exemptions have been given for such drugs: FM Nirmala Sitharaman after 45th GST Council meeting

  • GST Reduced on Drugs

    The GST Council also approved the proposal of reducing GST from 12 per cent to 5 per cent to the seven more drugs till December 31, 2021. These are Itolizumab, Posaconazole, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab, 2-Deoxy-D-Glucose and Favipiravir.

  • GST Council Announces Tax Concession on Life-Saving Drugs, Says finance minister Nirmala Sitharaman

  • Finance Minister Nirmala Sitharaman addresses the media

  • Council has approved increasing GST on railway part, locomotives to 18% from the current 12%

  • Sources say GST Council has approved Fitment Committee’s proposal to treat UPS & external battery at par. Current GST levy on UPS is 18%, external battery at 28%.

  • GST Council recommends to consider food delivery apps as restaurant services, say sources

    GST Council has approved the Fitment committee proposal for e-commerce operators (ECOs) - such as - “Swiggy and Zomato may be made liable to pay GST on restaurant service supplied through them.” Changes to come into effect from 1st January , 2022 
     

  • As the GST Council meeting is still in progress, the press briefing is slightly delayed. The briefing will commence after the GST Council meeting gets over. Inconvenience is regretted, tweets Finance Ministry

  • Sources say the GST Council has approved several proposals put forth by the Fitment Committee.

  • Carbonated Fruit Beverages of Fruit Drink" and "Carbonated Beverages with Fruit Juice" to attract GST rate 28% plus compensation of 12%.

  • All states unanimously oppose initiating talks on inclusion of petrol and diesel under GST

    Council unanimously felt this is not the stage to even consider a discussion on the inclusion of petrol  and diesel under GST

  • GST council approves increasing GST rate from 5% to 18% on iron, manganese, copper, nickel, cobalt, aluminium, lead, zinc, tin, chromium – ores and concentrates

  • Council members express reservation on differential rate on coconut oil 

    Sources told CNBC-TV18 that the proposal put on hold for further study. The Fitment committee had recommended clarification on coconut oil when packed and sold in a unit container of less than 1 litre,  may be classified as hair oil to attract 18 percent, Whlle Coconut oil when packed and sold in a unit container of 1 litre or more to be taxed GST rate of 5 percent

  • Finance Minister Nirmala Sitharaman to address the media on the outcomes of 45th GST Council Meeting at 6.30 pm today

  • Finance Minister Nirmala Sitharaman to address the media on the outcomes of 45th GST Council Meeting at 6.30 pm today

  • GST Council: Kerala to oppose move to increase tax on coconut oil
    Kerala will oppose the move to increase the tax on coconut oil as it will affect the interests of the people of the state, official sources said here on Thursday. State Finance Minister K N Balagopal, who has already reached Lucknow to attend the GST council meeting commencing on Friday, will raise the matter in the meeting to be chaired by Union Finance Minister Nirmala Sitharaman, they said. The sources said that there was a move in the GST council to increase the tax of coconut oil from the present 5 percent to 18 percent. According to them, a hike in the tax on coconut oil will pave the way for the rise in prices of coconut oil, which is the major edible oil item in Kerala and parts of Tamil Nadu and Karnataka. Sources said Kerala will strongly oppose in the GST council its move to increase the tax of the coconut oil as it is against the interest of the people of the state. 

GST Council meeting Highlights:
 The all-powerful GST Council on Friday decided to charge food delivery platforms such as Swiggy and Zomato a tax even as it extended concessional tax rates on certain COVID-19 drugs by three months till December 31. 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 reporters on the decisions taken by the Council at a meeting here, 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. 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.