Ordering food online from food delivery apps like Swiggy and Zomato will now be costly.At the same time, there is no relief from the increased prices of petrol and diesel.In the 45th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman in Lucknow on Friday, most states have opposed bringing petrol and diesel under the ambit of GST.At the same time, some other life-saving drugs, including drugs used in the treatment of corona and cancer, will now be cheaper.
To prevent tax evasion, the GST Council has decided to bring food delivery apps like Zomato and Swiggy under the purview of GST.Union Revenue Secretary Tarun Bajaj clarified that this is not a new tax.Restaurants collect GST from customers and pay it to the government, but it was found that restaurants used to collect tax from the customer but did not pay it to the government.So now the aggregators (food delivery companies) will pass that GST from the customer to the government.This rule will come into effect from January 1.
No relief from expensive petrol-diesel:At present, there is no relief from the increased prices of petrol and diesel.In the 45th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman, most of the states did not agree to bring petrol and diesel under the ambit of GST.Nirmala Sitharaman said that the Kerala High Court had directed the GST Council to consider bringing petrol and diesel under the ambit of GST.The issue was put up for the consideration of the Council on the directions of the High Court.In the meeting, most of the states have disagreed on bringing petrol and diesel under the purview of GST.Having said that this is not the right time for this.
Discounts on life-saving drugs:Sitharaman said that the GST Council has decided to extend the exemption period of GST on four drugs used in the treatment of Kovid-19 and black fungus till December 31.Among these, the rate of GST will be zero on Amphotericin-B, Tocilizumab and five percent on Remdesivir and Heparin.It also clarified that the time limit for the exemption has not been extended on the equipment related to the treatment of Covid, on which exemption was given till 30 September.The council has decided to reduce the rate of GST on some other medicines of Kovid from 12 to five percent.These include itolizumab, posaconazole, infliximab, favipiravir, cesarivimab and imdevimab,These include drugs such as 2-deoxy-D-glucose and bamalanivimab and etisivimab.This discount will also be available till December 31.From October 1, it has been decided to reduce the rate of GST on cancer drug Ketruda from 12 to 5 percent.With a view to making the costly drugs Xolgensma and Viltepso, which are imported for the treatment of contractile muscles, cheaper, they have been exempted from IGST.IGST will now attract 5 percent instead of 12 percent on the purchase of medicines recommended by the health ministry for the treatment of contractures for personal consumption.
New rates of GST on these items from October 1
Special Composition Scheme for Brick Kilns: TheCouncil has agreed to introduce a Special Composition Scheme from April 2022 for brick kilns with a turnover of up to 20 lakhs.The GST rate for brick kilns has been fixed at 6% without the input tax credit.If they take the input tax credit, they will have to pay 12 percent GST.At the same time, the Council has agreed to give three more months to the Group of Ministers to examine the proposal to impose a levy on tobacco products and pan masala on the basis of production capacity.