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Not the right time to bring petrol, diesel products under GST: Nirmala Sitharaman

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.

Finance Minister Nirmala Sitharaman during the press briefing. (Twitter/PIB)

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. “Not the right time to bring petrol, diesel under GST,” Nirmala Sitharaman said.

Here’s what else the finance minister announced:

# The concessional GST rates on Corona-related medicines have been extended till December 31st, 2021. But the same benefit has not been extended to medical equipment.

# Amphotericin B – nil rate, Tocilizumab – nil rate, Remdesivir – 5% , anticoagulants like Heparin – 5%. These concessional rates, which were valid till September 30, are now being extended till 31st December 2021.

# Cancer-related drugs – Keytruda – along with similar other medicines used in the treatment of cancer, as per the Health Ministry or the Department of Pharmaceuticals are being recommended that they should come down from 12% to 5%.

# GST rate on seven other medicines, which are recommended by Dept of Pharmaceuticals, have also been recommended for reduction from 12% to 5%. That is also extended till 31 Dec, 2021.

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

# Transport of export goods by vessels and 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.

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

# GST rate on fortified rice kernels for schemes like integrated child development schemes have been recommended to be reduced from 18% to 5%.

# GST rates on Retro Fitment Kits for vehicles, used by persons with special disabilities, have also been reduced to 5%.

# GST rate on seven other medicines, which are recommended by Dept of Pharmaceuticals, have also been recommended for reduction from 12% to 5%. That is also extended till 31 Dec 2021.

# Import of leased aircraft have been exempted from payment of I-GST

(Inputs from ANI, PTI)

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