43rd GST COUNCIL MEETING
On May 28, 2021, the GST Council convened its 43rd meeting. After a six-month break, the GST Council has convened. Finance Minister Smt. Nirmala Sitharaman presided over the meetings, which were also attended by Union Minister of State for Finance and Corporate Affairs Shri Anurag Thakur, as well as the Finance Ministers of the states and union territories (UTs), as well as other senior officers from both the Ministry of Finance and the States and UTs.
In addition, the Council decided to hold a special session in the coming months to explore how compensation cess will be collected after 2022.
Recommendation of 43rd GST Council meeting:
- Medical goods including Amphoteric B for free distribution and other medical goods related to the treatment of COVID-19 given full exemption from IGST upto 31/08/2021
- Duty exemption of importing Amphoteric B
- Amnesty Scheme to provide relief to tax payers
Amnesty Program to provide taxpayers with respite from late fees on awaiting returns:
The late fee for non-furnishing FORM GSTR-3B for the tax periods from July 2017 to April 2021 has been decreased/waived as follows to provide relief to taxpayers: –
- late fee capped at Rs 500/- (Rs. 250/- each for CGST and SGST) per return for taxpayers who did not have any tax liability for the said tax periods;
- late fee capped at Rs 1000/- (Rs. 500/- each for CGST and SGST) per return for other taxpayers;
As a COVID-19 relief measure, a number of COVID-19-related goods, such as medical oxygen, oxygen concentrators, and other oxygen storage and transportation equipment, certain diagnostic markers test kits, and COVID-19 vaccines, have been recommended for full IGST exemption, even if imported on a payment basis, for donation to the government, or on the recommendation of state authority. This exemption will be available until August 31, 2021. Previously, the IGST exemption only applied when the items were imported “at no cost” for free distribution. The same will be extended till the 31st of August, 2021. some products are already exempt from BCD.
In addition, due to an increase in Black Fungus cases, the above IGST exemption has been extended to Amphotericin B.
Additional relief in specific COVID-19 items after the Group of Ministers (GoM) publishes its report on June 8, 2021.In terms of specific goods, it was resolved to form a Group of Ministers (GoM) to investigate the need for immediate additional assistance for COVID-19-related specific items. The GOM must submit its report by June 8, 2021.
OTHER GOODS RELIEFS
The GST rate for Diethylcarbamazine (DEC) pills has been recommended for reduction to 5% to support the LympahticFilarisis (endemic) eradication project being implemented in partnership with WHO (from 12 percent ).
- To clarify, services provided to an educational institution, including anganwadis (which also provide pre-school education), by way of serving food, including midday meals, under any government-sponsored midday meals scheme are exempt from GST levy, and regardless of whether such supplies are funded by government grants or corporate donations.
- To clarify, services are given by the National Board of Examination (NBE), or comparable Central or State Educational Boards, by way of examination, including entrance examination, where a price is charged for such examinations, and input services pertaining thereto are free from GST.
- To make suitable revisions to the relevant notification to include an express provision stating that landowner promoters may claim credit for GST charged to them by developer promoters on such flats that are afterward sold by the land promoter and on which GST is paid. The developer promoter is authorized to pay GST on such apartments at any time before or after the completion certificate is issued.
- GST on MRO services for ships and vessels would be decreased to 5%. (from 18 percent ).
- The point of sale for B2B MRO services for ships/vessels would be the location of the service recipient.
- To clarify, if the value of commodities in a composite supply does not exceed 25%, a supply of service by milling wheat/paddy into flour (enriched with minerals, etc. by millers or otherwise)/rice to the government/local authority/etc. for distribution of such flour or rice under PDS is free from GST. Otherwise, such services would be subject to GST at a rate of 5% if provided to any GST-registered person, including a TDS-registered person.
- To make it clear that GST is due on annuity payments received as a deferred payment for road construction. The exemption applies to annuities paid for services provided by way of access to a road or a bridge.
- To clarify, services provided to a government entity through the building of a ropeway are subject to 18% GST.
- To clarify, services provided by the government to its undertaking/PSU in the form of guaranteeing loans obtained from banks and financial institutions are exempt from GST.