GST Council Meeting Highlights: Petrol and diesel to not come under GST regime
45th GST Council Meeting Highlights: Finance Minister Nirmala Sitharman said that GST Council discussed bringing petrol and diesel under GST regime as asked by the Kerala High court but the Council has decided against putting petrol and diesel under GST.
Finance Minister Nirmala Sitharaman speaks during a press conference. (PTI Photo)
GST Council Meeting Highlights: Finance Minister Nirmala Sitharaman chaired the 45th Goods and Services Tax (GST) Council meeting today in Lucknow where the council discussed bringing petrol and diesel under the GST regime as asked by the Kerala High Court, however, the Council decided against putting petrol and diesel under GST.
Apart from this, the minister also announced that concessional GST rates on Covid-19 related medicines which were applicable till September 30, have extended till December 31, 2021.
GST on Cancer-related drugs such as Keytruda reduced from 12 per cent to 5 per cent, Sitharaman said.
Additionally the finance minister informed that online retaurant aggregators such as Swiggy, Zomato will pay GST on restaurant service supplied through them. The tax is to be charged at point of delivery.
With near-record high petrol and diesel rates in the country, GST on petroleum products would end the cascading effect of tax-on-tax (state VAT being levied not only on cost of production but also excise duty charged by the Centre on such output).
The jugglery of taxability of petroleum products under GST will be closely watched as bringing it under its ambit would imply Centre losing its share of revenue from cesses on such products. A majority of the Rs 32.80 per litre excise duty on petrol and Rs 31.80 on diesel is made of cesses, which is not shared with states.
The 45th GST Council meeting chaired by finance minister and comprising of the state finance ministers, is the first physical meeting since the outbreak of Covid-19. The last such meeting took place 20 months ago on December 18, 2019. Since then the GST Council has been meeting through video-conferencing.
Friday's meeting does not have the provision of video conferencing and almost all state finance ministers, except Gujarat, are attending the meeting.
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