Corporate Review

GST Rates 2021: full list of the revised rates

GST Rates 2021: Full list of the revised rates

Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman chaired the 45th GST Council Meeting at Lucknow where several issues hosting to states compensation and GST rates revision on COVID essentials, GST inclusion for Petrol and Diesel, food delivery apps applicability took the centre stage.

Earlier suggested to tag them under the restaurant category, the already-under-radar food delivery apps Zomato and Swiggy were among the major discussion points along with GST applicability on petrol and diesel.

GST Council also stated that the existing concessions GST rates, which were previously valid till September 30, 2021, have been drawn out and extended till December 31, 2021.

Following the meeting, plenty of goods and commodities were observed revised GST rated. It was also decided not to include petrol or diesel under the GST.

As per a statement made by FM Sitharaman after the press briefing, it was revealed that the GST Council members did not want petroleum products to be included under the GST and the only reason that it did come on the agenda of the meeting was due to the Kerala High Court’s order where it suggested that matter should be taken up by the council during the meeting.

Here is the full list:

COVID-19 relief measure in form of GST rate concessions

Extension of existing concessional GST rates (currently valid till 30th September 2021) on following Covid-19 treatment drugs, up to 31st December 2021, namely

  • Amphotericin B -nil
  • Remdesivir – 5%
  • Tocilizumab –nil
  • Anti-coagulants like Heparin – 5%

Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to 31st December, 2021, namely

  • Itolizumab
  • Posaconazole
  • Infliximab
  • Favipiravir
  • Casirivimab & Imdevimab
  • 2-Deoxy-D-Glucose
  • Bamlanivimab & Etesevimab

Major recommendations on GST rate changes in relation to Goods [w.e.f 1.10.2021 unless otherwise stated]

GST Rate Changes

 1Retro fitment kits for vehicles used by the disabledAppl. rate5%
 2Fortified Rice Kernels for schemes like ICDS etc18%5%
 3Medicine Keytruda for treatment of cancer12%5%
 4Biodiesel supplied to OMCs for blending with Diesel12%5%
 5Ores and concentrates of metals such as iron, copper, aluminum, zinc and few others5%18%
 6Specified Renewable Energy Devices and parts5%12%
 7Cartons, boxes, bags, packing containers of paper etc.12% 18%18%
 8Waste and scrap of polyurethanes and other plastics5%18%
 9All kinds of pens12% 18%18%
 10Railway parts, locomotives & other goods in Chapter 8612%18%
 11Miscellaneous goods of paper like cards, catalogue, printed material (Chapter 49 of tariff)12%18%
 12IGST on import of medicines for personal use, namely Zolgensma for Spinal Muscular Atrophy Viltepso for Duchenne Muscular DystrophyOther medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals.12%Nil
 13IGST exemption on goods supplied at Indo-Bangladesh Border haatsAppl. rateNil
 14Unintended waste generated during the production of fish meal except for Fish OilNil (for the period 1.7.2017 to 30.9.2019)

Also Read: Government Budget in India

Other changes relating to GST rates on goods

1. Supply of mentha oil from unregistered person has been brought under reverse charge. Further, Council has also recommended that exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit.

2. Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.

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.

Major GST changes in relation to rates and scope of exemption on Services [w.e.f 1.10.2021 unless otherwise stated]

1. Validity of GST exemption on the transport of goods by vessel and air from India to outside India is extended upto 30.9.2022. – Nil

2. Services by way of grant of National Permit to goods carriages on payment of fee – From 18% to Nil

3. Skill Training for which Government bears 75% or more of the expenditure [presently exemption applies only if Govt. funds 100%] – From 18% to Nil

3. Services related to AFC Women’s Asia Cup 2022. – From 18% to Nil

4. Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programs [to bring parity between a distribution and licensing services] – From 12% to Nil

5. Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media) – 12% to 18%

6. Exemption on leasing of rolling stock by IRFC to Indian Railways withdrawn.

7. E-Commerce Operators are being made liable to pay tax on the following services provided through them

(i) Transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January 2022]

(ii) Restaurant services provided through it with some exceptions [w.e.f. 1st January 2022]

8. Certain relaxations have been made in conditions relating to IGST exemption relating to the import of goods on a lease, where GST is paid on the lease amount, so as to allow this exemption even if (i) such goods are transferred to a new lessee in India upon expiry or termination of the lease; and (ii) the lessor located in SEZ pays GST under forward charge.

Further reading:

Goods and Services Tax Council

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