GST Council turned down proposal to bring Petrol, Diesel under GST
New Delhi : The Finance Minister Nirmala Sitharaman on Friday said that the GST Council has turned down the proposal to bring Petrol, Diesel under the ambit of Goods and Service Tax (GST). She said this after the end of the 45th GST Council meeting held at Lucknow.
She said that the proposal to bring Petrol & Diesel under GST was brought before the council after Kerala High Court order, but the proposal has been turned down after state governments opposed it.
She said that, there are some life-saving drugs not connected with COVID19, but are very expensive, for which exemptions are being given. There wouldn’t be GST on them- Zolgngelsma & Viltepso costing around Rs. 16 Cr will now be exempted from GST.
On the other hand, GST rate on fortified rice kernels which can be used in schemes like Integrated Child Development Services Scheme has been reduced from 18% to 5% GST rate on biodiesel (supplied to oil marketing companies for blending with diesel) reduced from 12% to 5%.
GST on retro-fitment kits for vehicles used by Divyang/ Persons with Disabilities reduced to 5% .
Transport of export goods by vessels and air is exempt from GST; this was given due to difficulties being faced by exporters for getting Input Tax Credit refund due to technical issues on GST Portal .
Training programmes where govt. bears 75% or more of the cost shall now be exempt from GST (To give prominence to skill development, training programmes wholly funded by Central/State governments are already exempt from GST)
National Permit Fee charged by states for granting permit to goods vehicles to operate throughout India or in contiguous states is being exempted from GST.
IGST payable on import of aircraft or other goods imported on lease shall now be exempted from double taxation. This will facilitate domestic industry & aviation sector, these will also allow transfer of goods imported under lease without payment of IGST, FM said.