GST Council meet

Time not right to bring petrol and diesel under GST: FM Sitharaman

GST Council extends concessional tax rates on Covid drugs till year-end; 5% GST levied on food delivery apps

Time not right to bring petrol and diesel under GST: FM Sitharaman

Photo credit: Twitter/@FinMinIndia

Tribune News Service

New Delhi, September 17

Meeting in-person for the first time after two years, the GST Council on Friday reduced or waived cess on a large number of critical-use medicines but decided that this wasn’t the right time to bring petrol and diesel under GST.

The Council also agreed that collection compensation cess, which is over and above GST, will continue to be collected on alcohol, tobacco products, large vehicles, coal and aerated water till March 2026 “for the specific purpose of repayment of loans taken’’ to pay states, said Finance Minister Nirmala Sitharaman at a media briefing in Lucknow.

“There has been a lot of media speculation on whether petroleum products will be brought under ambit of GST. I make it absolutely clear that this came on today’s agenda purely because of the Kerala High Court order.

“Members made it clear they do not want petroleum products to be included under GST. It was decided, we will report to Kerala High Court that, matter has been discussed and the Council felt it was not the time to bring petroleum products under GST,’’ said the Minister.

GST was also reduced as part of “people friendly’’ decisions on retro-fitment kits for vehicles used by the disabled and fortified rice kernels which can be used in social sector schemes.

The life-saving drugs given exemption are not connected with Covid but are very expensive. For Covid medicines, the extension has been given till the year-end. But the extension for medical equipment related to Covid has ended.

In the transport sector, one-year extension has been given for export by vessels and air because of glitches in the GST portal. National permit fee has been exempted from GST. IGST payable on import of leased aircraft has been exempted from double taxation but GST on railway parts and locomotives will be increased to correct the inverted duty structure. The same exercise has been done for the footwear and textile sectors but deferred for ores and specified metals.

One Group of Ministers has been set up to look at issues related to anomalies in rate structure and another will examine issues of e-way bills, FASTAGs and plugging of loopholes.

The GST Council decided to charge food delivery platforms such as Swiggy and Zomato a tax.

The Finance Minister said 5 per cent GST will be levied at the point where the delivery is made by Swiggy and Zomato.

Tribune Shorts

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