New Delhi: Union Finance Minister Nirmala Sitharaman on Friday announced reduction in GST rate on biodiesel, supplied to oil marketing companies for blending with diesel, from 12 per cent to 5 per cent.
In a big announcement, the reduced GST rates on Covid-19 medicines have been extended till December 31, 2021. Earlier, the reduced prices were valid till September 30. These medicines include Amphotericin B (0%), Tocilizumab (0%), Remdesivir (5%), Heparin (5%). Sitharaman further announced the exemption of some life-saving drugs from GST.
Here are the other major announcements made by the finance minister following the 45th GST Council meet on Friday:
- GST on retro-fitment kits for vehicles used by Divyang/ Persons with Disabilities reduced to 5 per cent.
- GST rate on fortified rice kernels which can be used in schemes like Integrated Child Development Services Scheme has been reduced from 18 per cent to 5 per cent.
- Transport of export goods by vessels and air is exempt from GST. This was given due to difficulties being faced by exporters for getting Input Tax Credit refund due to technical issues on GST Portal
- National Permit Fee charged by states for granting permit to goods vehicles to operate throughout India or in contiguous states is being exempted from GST.
- Training programmes where government bears 75 per cent or more of the cost shall now be exempt from GST.
- IGST payable on import of aircraft or other goods imported on lease shall now be exempted from double taxation. This will facilitate domestic industry and aviation sector, these will also allow transfer of goods imported under lease without payment of IGST.
- GST rate changes will be done to correct inverted duty structure anomalies in footwear and textile sectors, to be implemented from January 1, 2022.
- Inverted duty structure anomalies for ores and specified metals will be corrected, but we have not yet decided on a date for this, said Sitharaman.
- GST on pen parts is 18 per cent, while certain kinds of pens are charged 12 per cent. It has been decided to correct this inversion by making rate on all pens and pen parts to 18 per cent.
- Specified renewable energy devices attract 5 per cent GST now, however all their inputs are taxed at 18 per cent. This inversion leads to embedding of ITC on input services and capital goods, to reduce inversion, GST will be 12 per cent for those specified renewable devices.
- GST to be 12 per cent for specified renewable devices
- GST on Railway parts and locomotives and other rail parts under Chapter 86 to be increased Upwards arrowfrom 12 per cent to 18 per cent to correct inverted duty structure.