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