New Delhi: Several decisions have been taken in the important meeting of the Goods and Services Tax (GST) Council held on Friday. Many life-saving medicines have been made GST-free. The Finance Minister also announced that the GSAT rate on drugs related to the treatment of corona, which was reduced till 30 September, has now been increased to 31 December. This reduction in the GST rate is only for medicines like Remdesivir. It does not include medical equipment.
Earlier, GST rates were exempted on medicines related to corona which was applicable till 30 September, now this exemption has been extended till 31 December 2021. This exemption in GST rates will be given only in medicines, the list which was released earlier included many other devices as well.
Nirmala Sitharaman said- We have taken decisions in the interest of the public. All these were stuck for a long time. The process for essential medicine was very long, which has now been taken out of the purview of tax. The decision has been taken today to keep very expensive medicines named Zolgensma and Viltepso out of the purview of tax. The medicines which were suggested by the Health Ministry to be kept outside the purview of tax, have also been exempted. The exemption limit in medicines related to corona has been increased by 3 months till December 31. In this, 4 drugs including Amphoteresin, Remdesivir will benefit. The exemption limit for 7 other medicines from 12 percent to 7 percent has also been increased till December 31. Cancer drugs have been removed from the 12 percent bracket to 5 percent. Vehicles made for the disabled will now have to pay only 5 percent tax. The reduction in biodiesel has been brought from 12 to 5 percent.
Negotiations on the price of petrol and diesel
The Finance Minister said- It happened only on petrol and diesel that on the suggestion of the court, we kept this matter in the meeting. We asked everyone whether petrol diesel should be brought under the ambit of GST. Most of the members said no to this. We will tell this to the court.
Changed method for Swiggy Zomato
He said that for food delivery services like Swiggy-Zomato, now tax will be collected according to the orders. No change has been made in the old tax, only the method will be changed and tax will be taken. Now instead of collecting tax from restaurants, the service provider will do the work of paying tax.
