The 43rd GST Council at New Delhi held on 28th May 2021 at 11 a.m. made decisions regarding GST Rates for various goods and services.
COVID RELATED RELIEF ITEMS-
As the country is going through a pandemic, demand for medical supplies like oxygen concentrators, certain diagnostic test kits, and other related goods and services is very high.
●A number of specialized covid related goods have been recommended to be exempted fully from IGST, even if these items are imported on a payment basis. These items will be donated to the government or on recommendations to relief agencies.
●The validity of this exemption will be valid up to 31st August 2021.
●In support of Lymphatic Filariasis, programs are conducted in collaboration with WHO. Thus, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).
Some major amendments that are made in respect of the GST Rates are:
●Leviability of IGST on repair value of goods re-imported after repairs
●Parts of sprinklers or drip irrigation systems that fall under Tariff Heading 8424 will be applied to 12% GST Rates even if they are sold separately.
●Any educational institutes that provide serving of food including Mid-day meals or any other mid-day meal schemes sponsored by the government is exempted from levy irrespective of their funding be it by the government or donations.
●Examinations including entrance examinations where fees are charged by the National Board of Examinations (NBE) or similar central or state government examinations are exempted.
●The developer promoter of any land is allowed to pay GST anytime before or at the time of issuance of the completion certificate of such lands.
●GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%).
● PoS of B2B supply of MRO Services in respect of ships/ vessels would be the location of the recipient of service
●Milling of wheat or paddy or rice into flour is exempted from GST if the value of such goods in such composite supply does not exceed 25%. If the value exceeds 25%, then 5% GST is applicable on such services.