Finance Minister Nirmala Sitharam
on Friday led the 43rd Goods and Services Tax (GST) meeting in which she
announced the GST exemption on import of Covid-related equipment received as
relief till August 31st.
This move, however, will scale up the availability of critical equipment required in the treatment of Covid-19.
The decision came after several states had several states suggested FM Sitharaman cut off the GST for medical oxygen, oxygen concentrators, pulse oximeters, and Covid testing kits.
In the meeting, the council also decided to include medicines used in the treatment of black fungus aka Mucormycosis in the list of exempted items.
Furthermore, the FM stated that decision on GST cut on vaccines and other Covid-care items will be taken by June 8 after a group of ministers will submit a report.
Apart from this, Sitharaman has announced an amnesty scheme for small GST taxpayers that will enable them to file returns with reduced late fee. In the meeting, it was also decided that the Centre will borrow Rs 1.58 lakh crore to compensate states for loss of revenue from GST.
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"The GST Council will hold special a session to discuss extending paying compensation to states beyond 2022," she said after the meet.
It may be noted here, in the 43rd GST Council Meet headed by Union Finance Ministry Nirmala Sitharaman, states’ representatives and Union territories met for the first time on Friday in nearly eight months.
Ahead of the meeting, finance ministers of opposition ruling party states decided to appeal to the government to reduce the tax rate on Covid-19 essentials.
Earlier this month, FM Sitharaman had ruled out the exemption of GST on Covid vaccines, medicines, and oxygen concentrators stating that such move would make levy burden on consumers to buy lifesaving items as manufacturers will not be able to offset the taxes paid on inputs.
Currently, 5 per cent GST is received from domestic supplies and commercial imports of vaccines while Covid drugs and oxygen concentrators attract a 12 per cent GST.
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