GST Tax relief in milling, pharma, education and food sectors

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GST Tax relief in the milling, pharma, education, and food sectors was much needed. As we know, The government has announced several reliefs to taxpayers. These include amnesty schemes, Mid-day Meal schemes, Tax Rates reduced on COVID-related medicines and types of equipment, and several others. These reliefs seem to be giving comfort and a ray of hope to taxpayers after facing the drastic second wave of Covid-19. Therefore, in this article, we will read about GST Tax relief in milling, pharma, education, and food sectors.

GST Tax relief in the milling

The GST Council has made it clear that no GST is payable for any individual to a State government. However, only if its purpose is to distribute that wheat flour to the public distribution system.

Moreover, if the composite value of service exceeds 25 percent in milling of wheat into flour or paddy into rice will attract only a GST Tax rate of only 5%.

It will undoubtedly have a beneficial influence on the businesses having GST Registration. Now, taxpayers can claim the tax advantage under this clarification. Furthermore, taxpayers may file refunds based on computation of excess tax.

GST Tax relief in the Pharma Industry

The 44th GST Council Meeting has announced significant reliefs in the pharma industry. Several Covid-19 related medicines and goods such as medical oxygen, oxygen concentrators, and vaccinations were recommended in full by the GST Council for exemption from IGST.

The IGST Exemption is valid even if imported on the basis of payment to government donations or a recommendation from a State agency to any relief agency.

Therefore, The Ministry of Chemicals and Fertilizers, NPPA, is instructed to update the MRP of drugs/medicines on which tax/GST rates are decreased. However, if manufacturers can ensure lower prices at the retail level by issuing a new price list, then Recall, re-label or re-sticker on the medicines released before the notification is not necessary.

Read more about GST Tax Rate reduced on COVID-related medicines and equipment

Taxation relief under GST for Educational Sector

According to a CBIC notification, GST is exempt from services provided by Central or State Boards. Furthermore, services by NBE for conducting examinations for the students are also under GST Exemption.

Furthermore, GST Tax relaxation is given to such boards for input services. For instance, admission or examination, such as online testing, published results, admitted cards, questions, etc. Hence, The decision will benefit millions of students.

To know more about No GST on examination fee charged by Central/States/NBE

GST Taxation Relief  for Food Sector

Similar to relief given to milling, education, and other sectors. The GST Tax relief is also available for the Food Sector. Accordingly, It is primarily for the Mid-Day Meal Scheme. CBIC clarifies that serving food in schools under Mid-Day Meals is under GST Exemption irrespective of its funding from government grants or corporate donations. Besides, Anganwadis are also part of Educational institutions. Therefore, serving food to anganwadis is also under GST Exemption.

COVID19 related relief measures for GST taxpayers

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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