Consider GST relief on Covid imports purchased for donations to states: Delhi High Court to Delhi Govt., GST council

29th May,2021

Consider GST relief on Covid imports purchased for donations to states: Delhi High Court to Delhi Govt., GST council

Finance Minister Nirmala Sitharaman said on Friday that the GST Council resolved to waive duties on the import of coronavirus relief material until August 31. Covid-related equipment has received ad hoc exclusions. We are accountable as a Council for ensuring that tax relief reaches the end-user, the common man, which is why there was a deadlock on exempting Covid-19-related items, According to FM Sitharaman. After the 43rd GST Council meeting, FM Sitharaman remarked, "As a Council, we are responsible for tax relief reaching the end-user, the common man," which is why there was an impasse on exempting Covid-19-related products. The decrease of the compliance burden for small and medium-sized taxpayers is one of the most important decisions made today. Late fees and Amnesty-related issues were also decided. An amnesty system was proposed to provide help to small taxpayers by decreasing late fees owed in certain circumstances. Taxpayers can now file pending taxes and take advantage of the Amnesty scheme's reduced late costs, according to FM Sitharaman. In addition, late fines have been reduced. The rationalised late fee and the decision to cut the maximum amount of late fee for small taxpayers will come into effect for future tax periods. Small taxpayers will benefit in the long run as a result of this: FM Nirmala Sitharaman is an Indian politician. The 43rd GST Council meeting, which included state finance ministers and was led by Finance Minister Nirmala Sitharaman, was held by video conferencing. For the first time in nearly eight months, the council is convening. On the GST compensation cess, the same formula will be used as last year. According to FM Sitharaman, the Centre will have to borrow 1.58 lakh crore and pass it on to the states. Finance ministers from eight states ruled by non-BJP and like-minded parties — Rajasthan, Punjab, Chhattisgarh, Tamil Nadu, Maharashtra, Jharkhand, Kerala, and West Bengal — devised a joint strategy to press for a zero tax rate on Covid essentials ahead of the top decision-making body's first meeting. Domestic supply and commercial vaccine imports are currently subject to a 5% GST, whereas Covid medicines and oxygen concentrators are subject to a 12% charge. The shortfall in compensation due to states has been calculated by the Centre at Rs 2.69 lakh crore.