CHANGES REGARDING GST RATES IN THE 43RD GST COUNCIL MEETING

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%).

GOODS-

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.
SERVICES-
●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.

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