The 43rd GST Council Meeting took place on May 28, 2021 under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman through video conferencing. It was also attended by Union Minister of State for Finance & Corporate Affairs, Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs.
The key recommendations announced by the council relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure are as follows:
- 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, This exemption shall be valid upto 31.08.2021.
- Amphotericin B is also exempted from IGST.
- Further relief in individual item of COVID-19 would be announced after Group of Ministers (GoM) submits report on 8thJune 2021
- The GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).
- GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%).
- Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns:
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: –
- late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per returnfor taxpayers, who did not have any tax liability for the said tax periods;
- 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.
- The GST Council will assemble for a special session later to ensure there is a discussion on the compensation cess post-2022.
Note: The above recommendations of the GST Council are for information purpose only. The same would be given effect through relevant Circulars/Notifications.
*Tanvi Singh, Editorial Assistant has put this story together.