Lucknow (Uttar Pradesh): Finance minister Nirmala Sitharaman while addressing a media briefing, post 45th GST council, clarified that the petrol, diesel GST was on the agenda of the GST council only because of the Kerala high court order.
“This item came on the agenda for today's discussion purely because Kerala high court order as some person approached the high court and the court said that this can be taken up by the GST Council. On the direction of the court, it was brought up and the members spoke very clearly that they do not want this under GST,” said finance minister Nirmala Sitharaman.
Moving to other topics, Finance Minister added, "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," said FM Nirmala Sitharaman after 45th GST Council meeting, in Lucknow.
FM also announces GST exemptions for some life-saving drugs, not related to corona but very expensive in nature as some of them are required for treatment of children such as muscular atrophy.
"I am giving the names of two because those two are very expensive drugs - Zolgensma and Viltepso. These two are very important drugs which cost something like Rs 16 crores. So the council has decided to grant exemption from GST for these two," she added.
Announcing the exemption of GST from Covid-19 related medicines Finance Minister said, "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. 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 31 December 2021"
Notably, the concessional GST rates provided for Corona related medicines were applicable till September 30, 2021.
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Similarly, cancer-related drugs - Keytruda - along with similar other medicines used in the treatment of cancer as per Health Ministry or Dept 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 31st Dec 2021, said Finance Minister
GST rates on Retro Fitment Kits for vehicles, used by persons with special disabilities, have also been reduced to 5%, added FM.
Giving a relaxation on the GST rate for fortified rice kernels for schemes like integrated child development schemes, a recommendation has been given by the council to reduce it from 18% to 5%.
GST rate on biodiesel which is supplied to oil marketing companies for blending with diesel has also been reduced from 12% to 5%.
Transport of export goods by vessels & air is exempt from GST till 30 September 2021. 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 the GST portal. The exemption is being extended by a year.
