GST reduced from 12 percent to 5 percent on biodiesel

NEW DELHI (Commodities control) GST council has decided to cut rate of tax on biodiesel for blending with diesel. Union finance minister Nirmala Sitharaman informed that effective rate is decided to cut from 12 percent to 5 percent on biodiesel.

She told reporters about decision taken in the meeting of GST council held in Lucknow. GST Council extends concessional GST rates on drugs used in COVID treatment till Dec 31.The Council cut tax rates on medicines used in cancer treatment from 12 percent to 5 percent.

Finance minister told that the council exempted national permit fee charged by states for operation of goods carriage. The Council agreed to correct inverted duty structure on footwear and textiles from Jan 1, 2022. As per the decisions of the meeting, pens will attract single GST rate of 18 percent. The specified renewable sector devices will attract 12 percent GST.

GST Council felt that it was not right time to bring petroleum products under GST regime. Sitharaman said a group of state ministers (GoM) will look at rate rationalisation related issues and will make recommendations in 2 months. E-commerce operators Swiggy, Zomato will have to pay GST on restaurant service supplied through them. The tax will be charged at point of delivery.

(By Commoditiescontrol Bureau: +91-22-40015505)