GST Council Meet Outcome: GoM Formed To Work Out More Exemption On Covid-Related Supplies
The 43rd GST Council chaired by Finance Minister Nirmala Sitharaman took a number of decisions. Some of the important decisions included exemption of GST on some select COVID-19 supplies till 31st August 2021. Also, the FM announced a decision to costitute a Group of Ministers (GoM) that would go in detail on the issue of how much exemption to Covid-related drugs and supplies and its finer impact. "The GoM would be constituted by tomorrow, I suppose, and it will come back to us on or before June 08, 2021," Finance Minister Nirmala Sitharaman told reporters while briefing on the decisions taken at the 43rd GST Council meeting today.
Any import of Covid-related relief items, even if purchased or meant for donating to government or any other relief agency, will be exempted from the Integrated Goods and Services Tax till Aug. 31, 2021, the FM announced. "AmphotericinB, the drug required for treating Mucormycosis fungal infection, has also been included in list of items exempted from IGST," she added.
The FM also said that for calculating the GST compensation cess payment the same formula as last year will be adopted this year too. The Centre estimates, it was mentioned, that it would have to borrow Rs. 1.58 lakh crore and pass on as back-to-back loans to states, she said. Now the Department of Expenditure would reach out to the various states to get a fix on the amount, as was the process last year, and would also hold discussions with the Reserve Bank of India (RBI) for raising the said amount, it was announced.
On GST Return filings, the FM informed that the annual return filing exercise will continue to be optional for FY21 for small taxpayers with turnover less than Rs 2 crore. "The reconciliation statements for 2020-21 have to be furnished by taxpayers with turnover of Rs 5 crore or more," the FM said.
The GST Council also took a decision to come out with an Amnesty Scheme with reduced late fee to be launched for Small GST Taxpayers. The rationalization of 'late fee' for Small Taxpayers would be applicable to future liabilities, it was told. There was also a decision to further rationalize the Annual Return form.
On the issue of extending the GST compensation period beyond July 2022, the FM said that a separate meeting will be held to only "take up this one agenda". "We’re in the last of the 5 years of the compensation promised to states. I have assured members of a discussion soon on compensation period," Sitharaman said.
More Details Awaited
