45th GST Council Meeting

The 45th action-packed GST Council meeting saw a slew of discourses around taxation on a number of imperative issues.

Important Points:

  • The meeting deliberated upon issues such as COVID-19 related relief, taxation implications on services of cloud kitchens and food delivery platforms, and the possibility of taxation on petroleum products.
  • The Council also decided to extend the GST relief on several drugs related to Covid-19 treatment till December 31. Simultaneously, tax cuts were announced for other life-saving drugs.
  • Unfortunately there was no announcement of retrospective application to the May 2021 notification that exempted oxygen cylinders and other related items from IGST.
  • The Council notified that from January 1 e-commerce operators (ECOs) dealing with food delivery (Swiggy, Zomato, etc.) will be taxed at 5 percent. However, the tax burden on the customer must ideally remain the same as earlier restaurants were responsible for tax payment and now the burden has been shifted to the ECOs making the deliveries.
  • The council also felt that it was not the right time to include petrol or diesel under the GST.
  • The inverted duty scheme on footwear and textiles will be corrected from January next year.
  • Cancer-related drugs to be brought down from 12% GST rate to 5%.
  • States which charge a national permit fee to grant a permit to goods carriers to operate throughout India are exempted from GST.
  • For import of Aircraft on lease, IGST paid has been exempted.

 

Goods and Services Tax Council (GST Council)

  • The GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: -
  1. a) Union Finance Minister - Chairperson
  2. b) The Union Minister of State, in-charge of Revenue of finance - Member
  3. c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government - Members
  • As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST.
  • Every decision of the Goods and Services Tax Council shall be taken at a meeting by a majority of not less than three-fourths of the weighted votes of the members present and voting (Central Government weightage =one third of the total votes cast and State Governments weightage= two-thirds of the total votes cast).