The GST Council’s 45th meeting was held on 17th September 2021 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure:
COVID- 19 relief measures have been extended till December 31, 2021. There is a reduction of GST rate to 5 percent on some more Covid-19 treatment drugs till December 31 and there have been changes in rates on a range of goods.
GST rate on Keytruda medicine for the treatment of cancer reduced from 12% to 5%. GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5%. GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5%.
Brick kilns have been brought under a special composition scheme with a threshold limit of Rs 20 lakh.
Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.
Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:
- Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
- Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.
GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, during the period from 1.7.2017 to 31.12.2018, in the same manner as has been prescribed for the period on or after 1st January 2019.
Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.
All laboratory reagents and other goods falling under heading 3822 attract GST at the rate of 12%
External batteries sold along with UPS Systems/ Inverter attract GST rate applicable to batteries [ 28% for batteries other than lithium-ion battery] while UPS/inverter would attract 18%.
E-Commerce Operators are being made liable to pay tax on the following services provided through them:
- transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
- restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022
Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.
Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST.
