GST Council Meet Today: Will petrol and diesel come under GST? Council to take call in first in-person meeting since start of pandemic

Will petrol and diesel come under GST? Council to take call in first in-person meeting since start of pandemic

17 Sep , 2021 By : monika singh

The Goods and Services Tax Council will today hold its first physical meeting since the start of the pandemic and is expected to take up issues such as inclusion of petroleum products within the tax ambit, extension of compensation for states beyond 2022 and a host of tax changes including continuation of reduced tax on Covid-19 relief materials. ET’s Gulveen Aulakh takes a look

1) PETROL, DIESEL WITHIN GST

Rising fuel prices have raised clamour for inclusion
Higher tax, cess on fuels have raised prices to record high
GST Council Secretariat has asked the council to discuss inclusion
Kerala HC had said council should decide on inclusion
States levy taxes on petroleum products, earn revenue

2) EXTENSION OF COMPENSATION PERIOD

Centre borrowing Rs 1.59 lakh cr to meet compensation cess gap

Centre confident of meeting gap for FY22 and arrears of FY21

Centre to present options before states on extension period

3) TAX RELIEF EXTENSION FOR COVID-RELATED DRUGS, MEDICINES

Tax exemption on Amphotericin B and Tocilizumab till Dec 31
Extension of concessional rate of 5% on Remdesivir and Heparin, anticoagulants till Dec 31
Lower GST to 5% from 12% on Favipiravir and 7 other drugs, till Dec 31

4) RATE CHANGES TO CORRECT INVERTED DUTY STRUCTURE

5) TAX RATE CHANGES IN SOME SECTORS

6) OTHER ISSUES

Empowering CCI to take up anti-profiteering cases, ending tenure of NAA by Nov
Empowering CCI to take up anti-profiteering cases, ending tenure of NAA by Nov
Covid cess on pharma for intrastate supplies in Sikkim
GST on food delivery apps at par with restaurants
Composition scheme for brick kilns, 6% GST without ITC