Key takeaways from the 43rd GST Council meet

Finance Minister Nirmala Sitharaman chaired the 43rd good and services tax (GST) council meeting on Friday, May 28, through videoconferencing.

Addressing a media briefing, FM Nirmala Sitharaman said that the issue of Covid-19-related equipment was one of the items on the agenda that had a very detailed discussion.

Here are the key takeaways from the meet:

1. The Council has decided to exempt IGST on the import of Covid-19 relief items till August 31, 2021.

2. Adhoc exemptions have been given for Covid-19-related equipment, she said.

3. A Group of Ministers will be formed soon who will submit their report within 10 days — on or before June 8, so that if there are any further reductions required, they will be done, in the sense, that rates will be decided by them.

Also read — GST Council leaves tax rate on Covid vaccines unchanged

4. Due to rising cases of black fungus, Amphotericin B has also been included in the exemptions list.

5. "I have assured the members that there will be a special session only on compensation cess matter beyond July 2022," FM Sitharaman said.

6. FM Sitharaman announced Amnesty Scheme to reduced late fee returns. Small taxpayers can file pending returns under this scheme, she said.

7. Sitharaman said that Rs 4,500 crore was paid to two vaccine manufactures, as advance payment. "The country is engaging with suppliers/manufacturers including Japanese, European Union for vaccines. In the coming months, supply will be more than what it is," she assured.

8. The Centre will borrow Rs 1.58 lakh crore to compensate states for loss of revenue from GST.

9. Late fees on ITR filing have also been rationalised. "The rationalised late fee and the decision to reduce the maximum amount of late fee for small taxpayers will come into effect for future tax periods. This will provide a long term relief to small taxpayers," Sitharaman said.

10. Annual return filing has also been simplified. The Council has recommended amending the CGST Act to allow for self-certification of reconciliation statements, instead of getting it certified by Chartered Accountants.

11. The Annual Return filing will continue to be optional for FY 2020-21 for small taxpa

12. The GST Council left taxes on Covid-19 vaccines and medical supplies unchanged. Currently, vaccines attract 5 per cent GST.