The Goods and Services Tax (GST) Council has exempted the import of the medicine used for treating 'black fungus' (mucormycosis) from the levy of I-GST (Integrated GST), Finance Minister Nirmala Sitharaman announced after chairing the 43rd meeting of the panel on Friday, 28 May.
The panel has also decided to waive I-GST on free COVID-19-related supplies from abroad, Sitharaman pointed out.
Amnesty Scheme Announced
An amnesty scheme for small GST taxpayers was also announced, allowing the filing of returns with a reduced late fee.
“One of the biggest decisions today is reduction of compliance burden of small taxpayers and medium-sized taxpayers... To provide relief to small taxpayers, an amnesty scheme has been recommended for reducing the late fee payable in these cases. Taxpayers can now file their pending returns and avail the benefits of this amnesty scheme with reduced late fees," the finance minister was quoted as saying by news agency ANI.
Amid vaccine shortages reported across the country, Sitharaman also said that India is engaging with suppliers and manufacturers of different countries for the doses, and the supply will be more than what it is in the coming months.
On GST Compensation Cess
Furthermore, she said that the Centre will borrow Rs 1.58 lakh crore to compensate states for the loss of revenue from GST.
“On GST compensation cess, same formula as last year will be adopted this year too. The rough estimate is that Centre will have to borrow Rs 1.58 lakh crores and pass it on to the states.”FM Nirmala Sitharaman, as quoted by ANI
The Council will hold a special session to discuss the extension of paying compensation to states beyond 2022, Sitharaman said.
Along with Sitharaman, the 43rd GST Council meeting was attended by MoS Anurag Thakur, along with the finance ministers of states and Union territories.
The meeting comes amid a devastating second wave of the COVID-19 pandemic in the country, which has crippled the economy once again. Over the last couple of days, the country has got foreign aid for essential medicines and equipment in the face of shortages.
(With inputs from PTI and ANI.)
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