GST Council: Big Blow on Petrol-Diesel while Covid Medicines became Cheaper
The results of the 45th meeting of the GST Council led by Finance Minister Nirmala Sitharaman was out. The meeting was expected to bring petrol and diesel under the ambit of GST. However, Union Finance Minister Nirmala Sitharaman said that the GST Council felt that it is not the time to bring petrol and diesel under GST. He said most states agree with the view. That is, there is a setback for the people waiting for a big cut in the prices of petrol and diesel.
Reduced tax on Biodiesel
However, the GST rate on biodiesel supplied to oil marketing companies for blending with diesel has been reduced from 12% to 5%. Now it has to be seen whether the oil companies give the benefit of this discount to the customers or not. Let us tell you that the prices of petrol and diesel are at a record level. This is increasing the burden on the pockets of the common people. This was the reason why petrol and diesel were expected to be brought under the ambit of GST.
Kerala, Maharashtra protested
Earlier, states had opposed the proposal to bring petrol and diesel under the purview of GST. Kerala Finance Minister KN Balagopal said that the state will strongly oppose if any step is taken to bring petrol and diesel under the ambit of GST. According to Balagopal, the move will adversely affect the revenue collection of the state. At the same time, Maharashtra has also announced to oppose any such proposal.
Maharashtra Deputy Chief Minister Ajit Pawar, who also holds the Finance portfolio, opposed the move, saying the existing tax system should not be changed to maintain the financial autonomy of states that are already suffering due to the Covid-19 pandemic. He has demanded that the Center should reduce taxes on fuel. So that people can get relief from the hike in prices.
Discount on corona medicines
Finance Minister Nirmala Sitharaman said in a conversation with the media that the exemption in GST on medicines related to Corona will continue. This exemption is till 31st December 2021. Along with this, it has been decided to give exemption from GST on life-saving drugs. The Finance Minister said that Zolgensma and Viltepso drugs have been exempted from GST. Both these are very important medicines whose cost is about 16 crores. Therefore, the GST Council has decided to exempt these 2 drugs from GST. At the same time, GST is not exempted on medical devices.
The GST rates on retro fitment kits for vehicles used by persons with special disabilities have also been reduced to 5%. At the same time, a decision has not yet been taken on bringing food delivery apps under the purview of GST. Let us tell you that after the outbreak of the Corona epidemic in the country, the first meeting of the council was held. Till now, the meeting was being held through video conferencing during the Corona period.
Collection stood at over Rs 1.12 lakh crore
Last August, the Goods, and Services Tax (GST) collection stood at over Rs 1.12 lakh crore. This was the second consecutive month that the GST collection crossed the Rs 1 lakh crore mark. The amount raised in August, however, has been less than Rs 1.16 lakh crore in July 2021. If compared to the month of August, then this time the collection has increased by more than 30 percent.
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