The 43rd GST Council Meeting, Finance Minister Nirmala Sitharaman said the council has decided to exempt IGST on free COVID related supplies upto August 31st 2021. So far the IGST exemption was available only when it was imported free of cost.
The GST Council’s meeting, the first this year, comes at a time when the country is reeling under the second wave of coronavirus infections that have derailed the economics recovery. Though the council is required to meet once every quarter, the last meeting was held in October last year.
Issues that dominated discussion at the 43rd GST council meeting
- Council has decided to exempted export of relief items and is being extended till August 31, 2021.
- Export of medicine for black fungus, that is Amphotericin B, has also been included into the exempted category.
- Import of Covid related Relief items, even if purchase and meant for donating to government or to any relief-agencies upon recommendation for state authority, to be exempted from IGST till August 31, 2021.
- FM Nirmala Sitharaman announced Amnesty Scheme to reduced late fee returns. Small taxpayers can file pending returns under this scheme.
- A group of Ministers will be quickly formed who will submit their report within 10days on or before june 8, 2021 so that if there are any further reductions which need to be done will be done, in the sense, that rates will be decided by them.
Inverted Tax Structure
The council had extensive talks on inverted talk structure. Inverted duty essentially refers to tax rates on input being higher than those levied on finished products. Several states have said that a course correction is required in the regard, particularly in sectors such as fertiliser, steel utensils, solar panels, tractors, tyres, electrical transformers, pharma, textile, cloth and railway locomotives