GST Council meeting begins: Here's what to expect
GST Council meeting today: Experts suggest that the decision to bring petrol under the purview of GST is not easy for the GST Council.
The 45th meeting of the GST Council is chaired by Finance Minister Nirmala Sitharaman, today. The GST Council meeting has already started. A lot has been reported on whether the Council will bring petrol-diesel under the GST ambit. The common man has held his hopes high to hear some good news from today’s meeting. The Council will also be discussing the decision to impose GST on the service of online food delivery companies like Swiggy and Zomato. In other words, if the decision is made, platforms like Zomato and Swiggy could be treated like restaurants in terms of taxation.
Finance Minister Smt. @nsitharaman chairing the 45th GST Council meeting in Lucknow today. MOS Shri @mppchaudhary , Finance Ministers of States & UTs and Senior officers from Union Government & States are also present in the meeting@PibLucknow pic.twitter.com/olefqxnMff
— Ministry of Finance (@FinMinIndia) September 17, 2021
According to various media reports, the government’s idea is likely to impose 5% GST on the service of online food delivery apps. If this proposal is approved, then such apps will have to collect tax from the restaurant and submit it to the government. It is claimed that there will be no burden on the consumer, by some reports.
Petroleum products under GST
Experts suggest that the decision to bring petrol under the purview of GST is not easy for the GST Council. The states earn revenue through it. The state government levies various types of taxes on petrol. Each state decides for itself on how much VAT should be levied on petrol. The earnings will decrease if the current taxation system is replaced with GST.
Covid-19 essentials
Apart from this, the council may also consider extending the tax exemption period on medicines used for Covid-19 till December 31.
On June 12, the government has reduced tax rates on Covid-19 medicines and essential commodities till September 30.
Amphotericin B, Tocilizumab, Remdesivir and anti-coagulants like Heparin, are likely to remain under the existing concessional tax rate structure, with further extension till December 31, 2021, from the present September 30.
Reduction of GST from 12% to 5% on the seven more drugs- Itolizumab, Posaconazole, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab, 2-Deoxy-D-Glucose and Favipiravir, till December 31, 2021, is likely to be discussed.
The GST system was implemented in the country on July 1, 2017.