The 43rd GST council meeting was held via video conferencing in New Delhi with other states finance ministers. The meeting was very important as the states’ ministers demanding GST rate cut and exemption of COVID-19 supplies via official letter. The union finance ministry has discussed on GST rate on COVID-19 related medical supplies along with compensation issues.
From dozens of central and state taxes like excise duty, service tax, and VAT were included in the nationwide goods and services tax (GST) in 2017, the official control through the Finance Minister along with the representatives of all the states as well as Union territories was important to bridge every quarter to consider the problems.
All Updates on 43rd GST Council Meeting
- “GST Exemption to some COVID-19 supplies till 31st August 2021”
- “A Particular Medicine for Black Fungus also exempted”
- “GoM to be formed to check if further reductions to be given to new items, GoM to submit reports before 8th June”
- “Amnesty Scheme with a reduced late fee to be launched for GST Small Taxpayers”
- “GST Amnesty Scheme for all Small Taxpayers (MSME). The GST Council is likely to announce an amnesty scheme on late fee in GST return filing to provide a huge relief to small taxpayers- Due to Covid-19 pandemic:-
Pending GSTR-3B returns from July-2017 to April 2021.
Amnesty scheme could be from 1st June 2021 till 31st August 2021″
- “GST Amnesty Scheme for all Small Taxpayers (MSME). The GST Council is likely to announce an amnesty scheme on late fee in GST return filing to provide a huge relief to small taxpayers- Due to Covid-19 pandemic:-
- “Rationalization of Late fee for Small Taxpayers to be applicable to future liabilities”
- “Annual Return form to be rationalized, Govt to amend CGST Rules”
- “Annual Return filing to continue to be optional for Small Taxpayers”
- “A Special Session on GST Compensation Cess before 22nd July 2021”
All Expectations of 43rd GST Council Meet
People should recognize the fact that the Judiciary is still active in India and is there to help the poor, underprivileged, old as well as other citizens and non-citizens of the country. The GST council’s meeting is scheduled for May 28. One of the agenda of the meetings will be the consideration of the honourable Delhi High court’s observation of “levying a 12% tax on the import of oxygen concentrators for personal use or received as a gift as unconstitutional.”
This observation of a court came in response to a plea filed by an 85-year old COVID patient whose relatives had sent her an oxygen concentrator from the United States. The Honourable High Court also quashed the Notification released by the Finance Ministry of imposing 12% IGST on oxygen concentrators imported for personal use or gift.
Abhishek Jain, Tax Partner, EY commented that the government had already granted exemption from IGST on the free import of oxygen concentrators for the purpose of providing COVID relief by all state government or any agency that is authorised by the state government.
“The Delhi High Court has beneficially extended the benefit of this IGST exemption to personal import as gifts for individual use as well. Given the enormity of the pandemic situation and as a life-saving measure and given that the revenue loss for the government may not be significant, the government may consider accepting the judgement and extending the benefit, Jain added.”
GST Council 43rd Meeting Discussed on Covid Equipment & Medicines
The GST meet has ended with no conclusion for the shortfall compensation of states, said finance minister Nirmala Sitaraman. She said that there is no dispute simply “we may have a difference over states’ compensation”. “We were not able to arrive at a consensus. I appealed to all the states. That is how the GST Council meeting ended.”
“The collection of cess is inadequate for paying compensation. This is absolutely apparent for everyone to see and because it is something which was never envisaged, the shortfall will be now be met by borrowing.”
“The Centre has issued a borrowing calendar, if I go beyond that to borrow, the G-Sec deals which are used as a benchmark for every other borrowing will go up, this will hence increase borrowing costs for states and private sector too.”
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“We are open to anyone who wants us to facilitate any loan. A lot of people have chosen Option 1, and some will approach us tomorrow morning. We are ready to deal with it.”
