New GST Changes: Here's A List Of What Will Cost More And What Will Become Cheaper

Finance Minister Nirmala Sitharaman announced the decisions taken by the Council after hours-long in-person meeting. While the Council extended the concessional tax rates on Corona-related medicines till 31st December, it felt it was not the time to include petrol and diesel under the GST, as was speculated ahead of the meeting.

The latest GST council decisions came as a mixed bag for industry even as several of them hailed the government move to announce clarifications around the exact rates that would apply on several items including greeting cards, packing material, cartons to railway parts.

Here’s How Much GST Is Charged On Life Saving Medical Equipments

Here's a list of changes that you should know about.

GST exemption

The Council today decided to extend existing concessional GST rates on Covid-19 treatment drugs till to 31st December, 2021. These medicines include: Amphotericin B (nil), Remdesivir (5%), Tocilizumab (nil), Anti-coagulants like Heparin (5%).

Reduction of GST rate to 5%

- Itolizumab

- Posaconazole

- Infliximab

- Favipiravir

- Casirivimab & Imdevimab?

- 2-Deoxy-D-Glucose

- Bamlanivimab and Etesevimab

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GST rate changes in relation to Goods

GST reduced

Retro fitment kits for vehicles used by the disabled - GST reduced to 5%

Fortified Rice Kernels for schemes like ICDS etc - GST reduced from 18% to 5%

Medicine Keytruda for treatment of cancer - GST reduced from 12% to 5%

Biodiesel supplied to OMCs for blending with Diesel - GST reduced from 12% to 5%

GST increased

Ores and concentrates of metals such as iron, copper, aluminum, zinc and few others - GST increased from 5 to 18%

Specified Renewable Energy Devices and parts - GST increased from 5 to 12%

Cartons, boxes, bags, packing containers of paper etc. - GST increased from 12/18% to 18%

Waste and scrap of polyurethanes and other plastics - GST increased from 5 to 18%

Reuters

All kinds of pens - GST increased from 12/18% to 18%

Railway parts, locomotives and other goods in Chapter 86 - GST increased from 12% to 18%

Miscellaneous goods of paper like cards, catalogue, printed material (Chapter 49 of tariff) - GST increased from 12% to 18%

IGST exemption on goods supplied at Indo-Bangladesh (Border haats) - Nil GST

Unintended waste generated during the production of fish meal except for Fish Oil - Nil GST

Nil GST

IGST on import of medicines for personal use, namely:?

- Zolgensma for Spinal Muscular Atrophy

- Viltepso for Duchenne Muscular Dystrophy

- Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals.

Food delivery apps

The GST Council decided to tax food delivery platforms such as Swiggy and Zomato. Sitharaman informed that 5% GST will be levied at the point where the delivery is made by Swiggy and Zomato. This means that now ordering food online will get costlier.

BCCL

The finance minister informed that inverted duty structure anomalies for ores and specified metals will be corrected, but the Council has not yet decided on a date for this.