Before the Goods and Services Tax (GST) Council meeting scheduled for July 11, the Fitment Committee has reportedly recommended a revision in tax rates for certain items. Sources reveal that the committee has proposed the elimination of taxes on Dinutuximab, a cancer drug, and a reduction in the tax rates for Kachri papad and steel slag from 18% to 5%.
Presently, pre-packaged and labelled papads attract a GST rate of 5%. However, Kachari’s papads have been subjected to 18% GST. In order to align the tax treatment with other papads, it has been recommended that the GST on Kachri and Kachari papads, which are produced through extraction rather than frying, be lowered to 5%. This adjustment would establish parity among various types of papads.
Additionally, the Fitment Committee has suggested a decrease in the tax rate on LD slag (steel slag) from 18% to 5%. The purpose behind this recommendation is to address supply chain disruptions and mitigate the risk of tax fraud, as highlighted by the Indian Steel Association (ISA) in their representation to the committee.
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LD slag is currently being tested to use as a viable alternative in industries such as cement manufacturing, highways, marine ecology, and soil conditioning. However, the current high GST rate of 18% on LD slag discourages its widespread usage, according to the ISA.
In a move to assist patients, the Fitment Committee has proposed the elimination of the 12% GST levied on the expensive cancer medicine Dinutuximab. The government had previously exempted a cancer patient from paying GST on the drug doses in March, owing to the exorbitant tax amounting to nearly Rs. 7 lakhs.
