As the country tackles with a stronger second Covid wave, all the states need the Centre to urgently convene a meeting of the Goods and Services Tax (GST) Council, which has not met for the last six months. This arrives after the chorus for rate cuts on key medicines and equipment grows louder. In this article we will discuss on Hold urgent GST meet to cut tax.
Hold urgent GST meet to cut tax
Due to the second Covid-19 wave, the states expect the Centre to urgently assemble a meeting of the Goods and Services Tax (GST) Council, which has not met for the last six months. This appears after the chorus for rate cuts on crucial medicines and equipment grows louder.
Moreover, states also expect to discuss addition of the compensation period, under the GST Regime, beyond July 2022 in the council meeting as unpredictable times cast a shadow over state finances.
States are urging exemption of key Covid drugs like Remdesivir, medical grade oxygen used in oxygen cylinders, and related supplements, which currently attract 12 per cent tax.
Other decisions piled up include rationalisation of GST slabs, correction of inverted duty on specific items and inclusion of petroleum commodities, among others.
Also the law orders the council to meet at least once a quarter, but the long gap this time has given rise to apprehensions.
Further Notification by Central Government
Chhattisgarh health minister who represents the state at the council, stated that the state is going to write to the Centre for GST exemption on Remdesivir, and related supplements. “We are mandating a GST exemption on Remdesivir and some other items. But, the GST Council requires to meet for that.
Amid this time, the country is confronting a critical shortage of the Remdesivir drug However, due to the high sincerity of the pandemic, many states are demanding a high volume of drugs to treat Corona. The State of Chhattisgarh has requested 90,000 Remdesivir injections, worth Rs 14.11 crore, with a pharma major Mylan Laboratories.
Further Coming to Punjab, Finance Minister Manpreet Singh Badal stated that states should discuss the issue about the extension of the GST Compensation beyond July 2022 as the economic uncertainty proceeds.
Moreover, 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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