18/09/2021
The 45th Meeting of the GST council concluded in Lucknow on 17/09/2021 and some recommendations were made. The following are the summary of outcomes of the meeting :
Major Rate changes w.e.f 01/10/2021
1.Life-saving drugs Zolgensma and Viltepso used in treatment of Spinal-Muscular Atrophy exempted from GST when imported for personal use
2. GST rate on Keytruda medicine for treatment of cancer reduced from 12% to 5%
3. GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5%
4. GST rates on Fortified Rice kernels for schemes like Integrated Child Development Services reduced from 18% to 5%
5. Reduction in GST rate on biodiesel (supplied to oil marketing companies for blending with diesel from 12% to 5%
6. GST Rate to be 18% on:
– all kinds of Pens
– Cartons, boxes, bags, packing containers of paper, etc.
– Miscellaneous goods of paper like cards, catalogue, printed material [Chapter 49]
– Waste and scrap of polyurethanes and other plastics
7. GST on Specified Renewable Energy Devices increased to 12% to reduce inversion
8. GST on Railway parts and locomotives and other rail parts under Chapter 86 to be increased from 12% to 18% to correct inverted duty structure
9. IGST exemption on goods supplied at Indo-Bangladesh Border haats.
Other changes relating to GST rates on goods
1. Supply of Mentha oil from unregistered person has been brought under Reverse Charge
Exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit
2. Brick kilns would be brought under Special Composition scheme with threshold limit of ₹20 lakhs w.e.f. April 1, 2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply.
Clarifications in relation to GST rate on Goods and Services :
1. “Carbonated Fruit Beverages of Fruit Drink” and “Carbonated Beverages with Fruit Juice” attract 28% GST rate and 12% Cess
2. Distinction between fresh fruits vs dried fruits and nuts is being clarified for application of GST rate of “nil” and 5%/12% respectively
3. Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST without ITC.
4. Supply of ice cream by Ice-cream parlors would attract 18% GST
5. Admission to amusement parks having rides etc. attracts 18% GST. GST @28% applies only to admission to such facilities that have casinos.
Outcomes with regard to GST compliances
1. Measures for streamlining compliances in GST:
Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration
2.Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B
3.Refund to be disbursed in the bank account which is linked with same PAN on which registration has been obtained under GST
4. Rule 59(6) of the CGST Rules to be amended w.e.f. January 1, 2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1 if he has not furnished FORM GSTR-3B for the preceding month
