1.Due to Covid - State governments made several requests to
the GST Council to decrease GST Registration rates on many medical essentials to fight back
Covid-19 and cure patients.
GST council's fitment committee has advised non-exemption of GST
on Covid- 19 vaccines from the current rate of 5 %.
The Fitment panel of the Council has suggested that central and
state governments have entirely obtained the vaccines. If the government makes
vaccines accessible to the public, GST will fall on the Centre and states.
The fitment committee advised decreasing the GST rate on pulse
oximeters, medical-grade oxygen, and oxygen concentrators to 5% from 12%. But
they have advised continuing with a 5 % GST rate decrease on Covid- 19 testing
kits is advised till the end of August 2021.
State governments have demanded to decrease GST rates on Covid-
19 related drugs and medicines. The panel did not advise anything further as
the protocol was being redirected based on discoveries.
Taking about GST on oxygen concentrators, the Delhi high court
announced that introducing a 12 % integrated GST (IGST ) on oxygen
concentrators obtained as gifts or used personally is illegal. The court talked
about notification no. 30/ 2021 - customer on 1st may 2021 provided by the
finance minister. In the notice, it was mentioned about 12 % IGST will be
imposed on oxygen concentrators obtained for use personally as a gift.
Bearing in mind the horror of the pandemic circumstances,
Council, after contemplation, may concede the judgment.
All have witnessed the extension of lockdown in several states
till the first week of June 2021; Council may decide to extend deadlines of GST
compliances.
2.GST Amnesty program for small taxpayers
In the GST return filing, the Council will declare an Amnesty
program on the late fee to give massive relaxation to small taxpayers and MSMEs
in our nation considering the pandemic. This program comprises all the pending
GSTR-3B returns from July 2017 till April 2021. The Amnesty scheme will remain effective
from 1st June till 31st August 2021.
3.GST Rate justification for some items
GST rate on two-wheelers may be decreased by the Council, which
is presently 28%. It is expected to augment the growth that was affected by the
pandemic. As we noticed higher sales of tractors in rural areas if rates are
reduced, it will inspire two-wheeler manufacturers in improving sales. The GST
Council may think about levying GST on natural gas. Moreover, natural gas could
be added in the three-tier GST method with different prices based on
consumption.
4.Solve the problems resulted from the Inverted Tax protocol
In industries such as fertilizer, railway, locomotives, tires,
solar panels, etc., correction of Inverted Tax protocol is necessary.
5. Rework compensation shortage and loan necessity
Every Indian state had requested finance minister Nirmala Sitharaman to convene a meeting quickly on working again on compensation
shortage and loan necessities. Due to covid-19, there is an economic breakdown
in states. States are also exploring the idea of prolonging the GST
Compensation inquest beyond July 2022 in the Council. According to the
Constitution, the federal government has been blamed for failing to call a
meeting with the GST Council at least once a quarter.
