Lucknow: Finance Minister Nirmala Sitharaman on Friday made it amply clear that there was no plan to bring petroleum products under GST as instructed by the Kerala High Court. She made this announcement after the 45th GST Council Meet in Lucknow.
She also announced some major GST exemptions on life-saving and Civic drugs. Here are some important points:
I make it absolutely clear that this (GST exemptions on petroleum) came on today’s agenda purely because of the Kerala High Court order where it suggested the matter to be placed before GST Council, GST Council members made it clear they do not want petroleum products to be included under GST.
It was decided, we will report to Kerala HC that, matter has been discussed & Council felt it was not the time to bring petroleum products under GST
We have seen in the last one year and probably earlier that some life-saving drugs, which are not connected with Corona and are very expensive. Exemptions have been given for such drugs
I am giving the names of two because those two are very expensive drugs – Zolgensma and Viltepso. These two are very important drugs which cost something like Rs 16 crores. So the council has decided to grant exemption from GST for these 2
Drugs that are suggested by the Ministry of Health for treating muscular atrophy, on the recommendation of Health Ministry and Dept of Pharmaceuticals, are also exempted for IGST on import for personal use
Similarly, cancer-related drugs – Keytruda – along with similar other medicines used in the treatment of cancer as per Health Ministry or Dept of Pharmaceuticals are being recommended that they should come down from 12% to 5%
Amphotericin B – nil rate, Tocilizumab – nil rate, Remdesivir – 5% , anticoagulants like Heparin – 5%. These concessional rates which were valid till September 30th are now being extended till 31st December 2021
GST rate on biodiesel which is supplied to oil marketing companies for blending with diesel have also been reduced from 12% to 5%
Transport of export goods by vessels & air is exempt from GST till 30 Sept. This exemption was given because of difficulties being faced by exporters in getting a refund of ITC (Input Tax Credit) due to technical issues on GST portal. This exemption is being extended by 1 more year.