Monday, October 18, 2021
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Decisions at 45th GST Council  Meeting – Key Highlights

The 45th GST Council meeting was held today i.e. on September 17, 2021, under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman at Lucknow. The meeting is the first in-person meeting of the GST Council in nearly two years. The previous Council meeting was held via videoconferencing on 12.06.2021. The minister also announced that concessional GST rates on Covid-19 related medicines which were applicable till September 30, have been extended till December 31, 2021. Petrol and diesel to not come under the GST regime.

Key decisions / recommendations at 45th GST Council Meeting:

  1. Life-saving drugs Zolgensma and Viltepso used in the treatment of Spinal-Muscular Atrophy are exempted from GST when imported for personal use.
  2. Extension of existing concessional GST rates on certain COVID-19 treatment drugs up to 31st December 2021
  3. GST rates on 7 other medicines recommended by the Department of Pharmaceuticals reduced from 12% to 5% till 31st December 2021
  4. GST rate on Keytruda medicine for the treatment of cancer reduced from 12% to 5%
  5. GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5%
  6. GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5%
  7. Council also recommends major changes in GST rates and scope of exemption on Services
  8. Recommends several clarifications in relation to GST rates on Goods and Services
  9. Council recommends several measures relating to GST law and procedure
  10. Council decides to set up 2 GoMs to examine the issue of correction of inverted duty structure for major sectors and for using technology to further improve compliance, including monitoring
  11. GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, as was discussed in earlier GST Council Meeting and was deferred for an appropriate time, will be implemented with effect from 01.01.2022.
  12. E-commerce operators Swiggy, Zomato to pay GST on restaurant service supplied through them; tax to be charged at the point of delivery
  13. GST Council felt it isn’t time to bring petroleum products under the GST regime
  14. GST rate on biodiesel for blending with diesel cut from 12 pc to 5 pc
  15. In August, GST revenue collection stood at Rs 1,12,020 crore. This was lower than the Rs 1.16 lakh crore collected in July but was still 29.6 percent higher than the year-ago period. 

GST Council has also recommended amendments in certain provisions of the Act and Rules.

Note: The recommendations of the GST Council have been presented in this release containing major items of decisions in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications/ Law amendments which alone shall have the force of law.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error, or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Pradeep Sharma
I am a CS Student. I believe, the knowledge & wisdom that reading gives has helped me shape my perspective towards life, career, and relationships. I enjoy meeting new people & learning about their lives & backgrounds. My mantra is to find inspiration from everyday life & thrive to be better each day.

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