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September 17, 2021 / 09:36 PM IST

GST Council Meeting 2021 Highlights: Swiggy, Zomato to pay GST to govt

GST Council Meeting Highlights: Finance Minister Nirmala Sitharaman briefed the media after the 45th GST Council Meeting and elaborated on the decisions taken by the GST members.

GST Council Meeting Highlights: Finance Minister Nirmala Sitharaman is chairing the 45th meeting of the Goods and Service Tax (GST) Council in Lucknow today. The meeting is the first in-person meeting of the GST Council in nearly two years.

The GST Council has extended the GST rate cuts on Covid essential items till 31 December. However, the latest extension only includes medicines and not

other medical equipment, Finance Minister Nirmala Sitharaman said on September 17.

Sitharaman announced that inverted duty structure on footwear and textiles will be corrected from Jan 1, 2022.  On locomotives and certain railway parts, GST rate has been increased to 18 percent from 12 percent to correct inverted duty structure. On the same note, 12 percent GST will be applicable on specific renewable devices.

States charge national permit fee for granting permit to goods carriage to operate across India. This national permit fee has been exempted from GST. Trainees under skill development programs will also not need to pay GST.

The government has also extended the GST exemption on transport of export goods by vessel and air by one more year ill September, 2022. The exemption was given due to the difficulty faced by exporters in seeking tax exemptions.

Despite the issue being discussed extensively, the latest meeting did not see petrol and diesel being brought under the GST fold. States have broadly argued against the idea, saying this was not the right time to implement the idea.
  • September 17, 2021 / 09:34 PM IST

    This live blog session has concluded. Stay tuned to MoneyControl for more updates. 

  • September 17, 2021 / 09:27 PM IST

    GST Council Meet | Not restaurants but Swiggy, Zomato to pay GST to govt 

    Online food delivery firms Swiggy and Zomato will now be liable to pay good and services tax to the government following a decision taken at the GST Council meet on September 17.

    "Yes there was detailed discussion... the place where food is delivered is going to be the point where tax will be collected. They will pay the GST on it," said Nirmala Sitharaman, Minister of Finance said while briefing the media.

    "There is no new tax," she added.

    The government had been working on a proposal to ask food delivery delivery apps to collect and deposit GST with the government, instead of what is currently done by the restaurants.

    Currently, online bills generated by food aggregators already have a tax component in it. However, according to people privy to the practices of these firms, this taxed amount is paid back to the restaurant partners who are then expected to pay this amount to the government.

    READ MORE HERE

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  • September 17, 2021 / 09:25 PM IST

    GST Council Meeting 2021 LIVE Updates: Shareen Gupta, Partner, J Sagar Associates commeneted: "The expectations of the industry on issues of rate rationalisation, correction of inverted duty structure seem to have been prioritised by the Council in today’s meeting, with proposals to change the rates for specific goods and services. However, the policy level agenda of inclusion of petroleum products into the GST net, has been kept in abeyance. The proposal to extend the period for levy of compensation cess till March 2026 does not come as a surprise to the industry, as it has been in discussions since last year."

  • September 17, 2021 / 09:23 PM IST

    GST Council Meet | GST exemption on Covid essential medicine extended till December
     


    The GST Council has extended the GST rate cuts on Covid essential items till 31 December. However, the latest extension only includes medicines and not other medical equipment, Finance Minister Nirmala Sitharaman said on September 17.

    "The rate cuts on these were earlier applicable till September 30. This is being extended keeping in mind the continuing demand for these medicines," Sitharaman said while addressing the media after the 45th GST Council Meeting held in Lucknow. Tax rates on medicines used in cancer treatment have also been cut from 12 percent to 5 percent, she added.

    This was the first in-person meeting of the all-powerful federal body in nearly two years. The last in-person GST Council meeting was held in December 2019 in New Delhi. Since then five more meetings have been convened through video conference.

    At its June 12 meeting, the GST Council had slashed the GST rates on a number of items crucial in the fight against Covid-19 pandemic. These include essential medicines, oxygen, oxygen generation equipment and related devices, and diagnostic and testing machine kits.

    The items on which rate cuts were made included Remdesivir, Tocilizumab, medical grade oxygen, oxygen generator, ventilators, masks, covid testing kits, oximeters, hand sanitizers, cremation furnaces, ambulances, temperature checking devices and others.

    READ MORE HERE. 

  • September 17, 2021 / 08:35 PM IST

    GST Council Meeting 2021 LIVE Updates: There is no new tax on swiggy and Zomato, confirms Revenue Secretary.

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  • September 17, 2021 / 08:32 PM IST

    GST Council Meeting 2021 LIVE Updates: FM Sitharaman says two Group of Ministers (GoM) have been formed. One GoM will look at rate rationalisation issue and submit report within two months and come back with clarity on rate rationalisation. The second GoM will look into related issues of e-way bills, fastag, plugging of loopholes, technology, etc. They will also submit within two months.

  • September 17, 2021 / 08:28 PM IST

    GST Council Meeting 2021 LIVE Updates: FM said cess to pay back the compensation loans taken by centre and then transferred to states last fiscal and this fiscal year, that cess will continue till March 2026.
    FM clarifies that beyond June 2022, the cess that will be collected to repay the loans taken by the states, will continue till March 2026.

  • September 17, 2021 / 08:23 PM IST

    GST Council Meeting 2021 LIVE Updates: The FM said that the issue of petrol and diesel was discussed. Several states said they don't want to bring these under GST. It was decided that the Council should report to Kerala High Court that the matter was discussed. The Council felt it was not time to bring petrol and diesel under GST, she added. 

  • September 17, 2021 / 08:20 PM IST

    GST Council Meeting 2021 LIVE Updates: GST Council cuts tax rates on medicines used in cancer treatment from 12% to 5%, says FM

  • September 17, 2021 / 08:16 PM IST

    GST Council Meeting 2021 LIVE Updates: 12% On locomotives and certain railway parts, GST rate has been increased to 18% from 12% to correct inverted duty structure, FM Sitharaman.

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  • September 17, 2021 / 08:13 PM IST

    GST Council Meeting 2021 LIVE Updates: 12% GST will be applicable on specific renewable devices, says FM Sitharaman 

  • September 17, 2021 / 08:11 PM IST

    GST Council Meeting 2021 LIVE Updates: Inverted duty scheme on footwear and textiles will be corrected from January 1, 2022, says FM Sitharaman.

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