Recommendations of 45th GST Council Meeting

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GST Council in its 45th Meeting provided its various recommendation to the Government and these recommendations are people centric.

Following are the Key highlights of the major recommendations made during this meeting:

Life-saving drugs Zolgensma and Viltepso used in treatment of Spinal-Muscular Atrophy exempted from GST when imported for personal use
Extension of existing concessional GST rates on certain COVID-19 treatment drugs upto 31st December 2021
GST rates on 7 other medicines recommended by Department of Pharmaceuticals reduced from 12% to 5% till 31st December 2021
GST rate on Keytruda medicine for treatment of cancer reduced from 12% to 5%
GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to 5%
GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5%
Council also recommends major changes in GST rates and scope of exemption on Services
Recommends several clarifications in relation to GST rates on Goods and Services
Council recommends several measures relating to GST law and procedure
Council decides to set up 2 GoMs to examine issue of correction of inverted duty structure for major sectors and for using technology to further improve compliance, including monitoring

Also, “Council discussed in terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage”

Few life saving drugs like Zolgensma for Spinal Muscular Atrophy, Viltepso for Duchenne Muscular Dystrophy and Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals are exempt from GST

Correction in Inverted Duty structure in Footwear and Textiles sector

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.

Measures for Trade facilitation:

Relaxation in the requirement of filing FORM GST ITC-04:

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:

Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually

Measures for streamlining compliances in GST

Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month

Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration

Please note: Above is only highlights of the entire notification, you are requested to read the entire notification, by following the below link:

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