44th GST Council Meeting highlights dt. 12.06.2021

[CSLalit Rajput]

The 44^th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 12^th day of June, 2021, Saturday, via video conferencing in New Delhi.

Union minister of state (MoS) for finance Anurag Thakur and finance ministers of states and Union territories (UTs) are also attending the virtual meeting, which is being held to finalise modalities to compensate states for their revenue shortfall of ₹ 2.35 lakh crore in the current financial year.

Proposal at this meeting: To reduce the GST rates on the specified items being used in Covid-19 relief and management like hand sanitisers, face masks, gloves, PPE Kits, temperature scanners and others and to take a decision on relief in respect of COVID-19 related individual items based on the report of Group of Ministers.

Previous Meeting (43^rd GST Council Meeting): It held on 29^th day of May, 2021, where the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM) and took several decision to help the industries affected by Covid-19. The Council had also decided in previous meeting to reduce the compliance burden of small taxpayers and medium-sized taxpayers and recommended an amnesty scheme for reducing late fee payable, to provide relief to small taxpayers. 

• 44^th GST COUNCIL MEETING KEY HIGHLIGHTS

1. The tax rate on ventilators, medical grade oxygen, COVID-19 testing kits, oxygen concentrators and BiPAP machine have been brought down to 5 percent from 12 percent at present.
2. The GST on anti-coagulants like Heparin, high flow nasal canula (HFNC) device and pulse oximeters has been reduced to 5 percent from 12 percent at present.
3. The GST on hand sanitisers and temperature check equipment has been reduced to five percent from 18 percent at present.
4. 5% GST on vaccines will stay.
5. "GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material.
6. GST Council approved all recommendations of GoM on rate rationalisation.GST on ambulances reduced to 12 percent.
7. The Centre will buy the 75 per cent vaccine as announced and will pay its GST too. But 70 per cent of income from GST will be shared with States.

• The details of recommendations on GST Rates are given below :

S. No.	Description	Present GST Rate	GST Rate recommended by GST Council
Medicines
1.	Tocilizumab	5%	Nil
2.	Amphotericin B	5%	Nil
3.	Anti-Coagulants like Heparin	12%	5%
4.	Remdesivir	12%	5%
5.	Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment	Applicable Rate	5%
Oxygen, Oxygen generation equipment and related medical devices
1.	Medical Grade Oxygen	12%	5%
2.	Oxygen Concentrator/ Generator, including personal imports thereof	12%	5%
3.	Ventilators	12%	5%
4.	Ventilator masks / canula / helmet	12%	5%
5.	BiPAP Machine	12%	5%
6.	High flow nasal canula (HFNC) device	12%	5%
Testing Kits and Machines
1.	Covid Testing Kits	12%	5%
2.	Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH	12%	5%
Other Covid-19 related relief material
1.	Pulse Oximeters, incl personal imports thereof	12%	5%
2.	Hand Sanitizer	18%	5%
3.	Temperature check equipment	18%	5%
4.	Gas/Electric/other furnaces for crematorium, including their installation, etc.	18%	5%
5.	Ambulances	28%	12%

• Validity of this revised rates:

The new rates will remain in effect till September 30, 2021 and can be extended further upon nearing the deadline.

Source: Press Release / Twitter

 

Discussions to this article

[SAFETAB LIFESCIENCE]

Dear Sir,

What is the effective date for this.

You had mentioned the ending date as 30.09.2021 for this concession

But there is no mention about the starting date. Is it 12.06.2021 or 14.06.2021

[CSLalit Rajput]

GST Rates notified w.r.t. 44th GST Council Meeting

GST notification: Seeks to provide the concessional rate of CGST on Covid-19 relief supplies, up to and inclusive of 30th September 2021

Notified vide Notification No. 05/2021-Central Tax (Rate) on 14^th June, 2021

[SAFETAB LIFESCIENCE]

Dear Sir,

Thanks a lot for swift response, Ji.

[OmPrakash jain]

sir,

Per notfn No. 05/2021-CT(R) dated 14.6.2021, the GST Rate on Covid-19 relief supplies has been reduced on various items from 14.6.2021 to 30.9.2021. But notfn is purposely silent for reduction/exemption of GST rates from March, 2021 to 13.6.2021. For this period no reduction ion GST has been made by CBIC.

The notfns issued by CBIC on 14.6.2021 are totally revenue oriented & are against the ratio decidendi of Delhi High court judgment in the case of Gurcharan Singh v. Ministry of Finance & Ors. 2021 (5) TMI 742 - DELHI HIGH COURT, against which the Govt. has intentionally obtained stay in the case of Ministry of Finance (Deptt. of Revenue) v. Gurcharan Singh. 2021 (6) TMI 595 - SC ORDER.