Last GST council meeting i.e. the 42nd GST council meeting was held on 05.10.2020 and now after almost 8 months next GST council meeting i.e. 43rd GST council meeting has been held and the key highlights of the meeting are as under:
- Exemption on import of Covid-19 related relief items for special cases extended till 31.08.2021.
COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021.
IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.2021.
- A particular medicine for black fungus exempted from GST.
Exemption from IGST has been extended to Amphotericin B.
As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021
- Although exemption has been provided for Covid related items as of now but new rates shall be announced soon.
To support the Lympahtic Filarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).
- Correction of inverted duty structure in footwear and textile shall be discussed later on.
- Amnesty scheme has been announced for small and medium tax payers for reducing late fees.
To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: –
i. late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;
ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;
The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.
- There will be a reduction in maximum amount of late fees to give relief to small taxpayers.
- Annual return shall remain optional and reconciliation shall remain self certified and CA certification is not required now i.e. GST audit is no longer required.
- Formula for compensation cess will be similar as that of last year.
This are some of major announcement in this GST council meeting.
There are various other relief/ clarification announced which shall be discussed in detail in upcoming posts.
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