Highlights of the 45th GST Council Meeting

GST Council Meeting held on17th Sep 2021 have enlisted Highlights

• A late fee on GSTR-1 delays will be auto-populated and collected in the next open GSTR-3B return.
• From 1st January 2022 onwards, the CGST Rule 59(6) to block GSTR-1 for not filing previous months’ GSTR-3B shall stand revised and implemented. 
• Amendments will be made to the CGST Rule 36(4) once the new provision Section 16(2)(aa) is notified by the CBIC. 
• The GST Council has relaxed the frequency to furnish form ITC-04 in case of job work reporting. It is once in six months for those with an annual turnover of the preceding year being more than Rs.5 crore, whereas once in a year for the rest. 
• Inter-GSTIN transfers of unutilised cash balance of CGST and IGST without refund procedures have been allowed. 
• Interest under Section 50 of the CGST Act on the input tax credit claimed and utilised will be charged at 18% p.a retrospectively from 1st July 2017.
• Matter on including petrol under GST deferred
• GST to be charged on the food delivery apps from 1st January 2022
• Aadhaar Authentication to become mandatory
• GST rates revised on several items

List of GST rates on Goods got revised

1. Several expensive life-saving drugs not connected to COVID but have been in demand to treat muscular atrophy or dystrophy, such as Zolgensma and Viltepso, have been exempted from GST. 
2. Further, drugs recommended by the Ministry of Health and Family Welfare and the Department of Pharmaceuticals for treating the same and imported for personal use are exempted from IGST.
3. The list for GST concession of the COVID treating medicines stands expanded. Further, the time limit has been extended from 30th September to 31st December 2021, except for the original list of COVID-treating equipment.
4. Many GST rates were on Cancer-related drugs such as Keytruda, and few others were reduced from 12% to 5%. 
5. Further, the GST on retro fitment kits used in vehicles built for people with disabilities is reduced to 5%. 
6. The GST rate on fortified rice kernels for ICDS for blending with diesel is reduced from 18% to 5%. 
7. The biodiesel supplied to oil marketing companies is slashed from 12% to 5%.

List of GST rates on Services got revised

1. Firstly, the transportation of export goods via the sea and the air, which was earlier exempted from GST due to technical difficulties on the GST portal, further extended such exemption up to one year.
2. Secondly, states that charge national permit fees granting permits for goods carriage to operate throughout India and in contiguous states got exempted from GST. 
3. Thirdly, training programmes for skill development which are either wholly or partly (up to 75%) funded by the Central or the state government stands exempt from GST. It means that trainees may be required to pay a small fee with the Centre or states compensating 75% chunk of the fee. 
4. also, there are few more services that saw a GST rate revision.

• Inverted tax structure corrected for several industries
• Compensation Cess extended up to March 2026
• New Group of Ministers (GoM) to be formed