GST Council Meeting 2021: IGST is exempted on free COVID-related essentials till August 31GST Council Meeting 2021:The goods and services tax (GST) Council meeting was held today after a gap of almost eight months, amid the ranging second wave of the COVID-19 pandemic in the country.While addressing a press conference after the Council meeting concluded, Ms Sitharaman announced that the integrated goods and services tax (IGST) is exempted on free COVID-related essential items till August 31, 2021.
(AlsoRead:Decision On Tax Cuts On Covid Vaccines By June 8, Says Government)The Finance Minister announced that a group of ministers will deliberate on the tax rates of COVID vaccines, medicines, and other such essential supplies on June 8, 2021.
Some of the major takeaways from the 43rd GST Council meeting - the first GST meet in the current financial year 2021-22, are as follows:Due to the surge in the number ofBlack Fungus cases acrossthe country, the duty on import of the medicine-Amphotericin B, used to cure Black Fungus, is exempted.The Amnesty Scheme was announcedto reduce late fee returns.
Under this scheme, small taxpayers can file pending returns.
The late fee for non-furnishing FormGSTR-3Bfor the tax periods between July 2017 -April 2021is reducedIn order to reduce the burden of late fee on smaller taxpayers, the upper cap of late fee is now rationalized to align the late fee with tax liability orturnover of the taxpayersThe annual return filing for the financial year 2020-21 is simplified, toease the compliance requirementin furnishing reconciliation statements inFormGSTR-9C.
Taxpayers will beable toself-certifythe reconciliation statement, instead of getting it certified by chartered accountants.The finance minister also announced that the central government will borrow a sum ofRs 1.58 lakh crore to compensate the states for the loss of revenue from GST.Finance Minister Nirmala Sitharaman chairedthe 43rd GST Council meettoday through a video conference and representatives including seniors officials and finance ministersof states and union territories attended the meeting.What analysts say:''While the compliance relief is likely to benefit around 89 per cent of the taxpayers, much was expected from the GST Council, as it met after more than six months.While all the recommendations may provide temporary reliefs to the taxpayers, some important aspects like correction of duty inversion, entitlement to ITC vis--vis vaccination for employees, and extension in due dates for GST returns remain eluded,'' saidMr Saket Patawari, Executive DirectorIndirect Tax, Nexdigm.