45th GST Council Meeting

  • IASbaba
  • September 18, 2021
  • 0
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45th GST Council Meeting

Part of: Prelims and GS-III- Economy

Context The 45th GST Council meeting was chaired by union finance minister in Lucknow recently

Key decisions by the council

  • Petroleum products will be out of the GST regime.
  • Consumers will continue to pay the Compensation Cess along with GST levied on products like automobiles, tobacco products and aerated water till March 2026.
  • Concessional tax rates on COVID-19 essential medicine like Tocilizumab, Amphotericin B and Remdesivir extended till December 31st. 
  • Muscular atrophy drugs like a Zolgensma and Viltepso that cost around ₹16 crore are exempted from GST.
  • Import of leased aircraft exempted from IGST.
  • 5% GST to be levied on food delivery apps.
  • Tax on fortified rice kernels for ICDS scheme reduced from 18% to 5%. 
  • GST on cancer drugs like Keytruda was cut from 12% to 5%.
  • GST on footwear costing less than Rs.1000 and ready-made garments and fabrics have increased to 12% from 5%. It will come in effect from January 1st
  • Bricks would attract GST at the rate of 6% without input tax credits under the scheme, or 12% with input credits.

Formation of two group of ministers

  • The Council has decided to form two groups of ministers (GoMs) To shore up GST revenues.
  • They have to recommend measures within two months. 
  • The first one has been tasked with reviewing tax rate rationalisation issues to correct anomalies in the rate structure.
  • The other will look to tap technology to improve compliance and monitoring. This will look at e-way bills, Fastags, compliance and composition schemes to plug loopholes.

News source: TH

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