Amid Rising of CoVid-19 Cases States Call for GST Council Meeting.
Shambhavi Sharma / 2021-04-22 05:04:45
States have requested an urgent meeting of the Goods and Services Tax (GST) Council, which had not met in six months due to the second wave of COVID-19 infections in the region.
According to Business Standard, states are appealing for GST exemption for critical drugs and equipment used in COVID-19 care, for example remdesivir, medical grade oxygen used in oxygen cylinders, and other related supplements.
According to the survey, these products are currently subject to a 12 percent GST. On October 12, 2020, the Council convened for the first time.
States also want to talk about extending the GST payout duration past July 2022, according to the study. Other topics that could be addressed include GST rate slab rationalisation, correction of inverted duty on certain (copied) goods, and the inclusion of petroleum products, according to the study.
Over the last few days, India has been recording at least more than 2 lakh fresh COVID-19 cases per day. As a result, hospitalizations have increased, as has demand for Remdesivir and oxygen cylinders.
TS Singh Deo, Chhattisgarh's health minister, told Business Standard that the state would write to the Centre requesting that Remdesivir and related supplements be exempt from GST.
We're asking for a GST exemption on Remdesivir and a few other items. However, the GST Council must meet in order to do so. "There should have been a virtual conference," Deo said to the paper. This was asked for all the GST Registered Purchasers.
According to Deo, the Chhattisgarh government has placed an order with Mylan Laboratories for 90,000 remdesivir injections worth Rs 14.11 crore.
Due to economic uncertainty, Punjab finance minister Manpreet Singh Badal believes it is necessary to negotiate GST compensation to states.
"The GST Council is required by law to meet once every quarter. Now is the time to fix the GST system. It can not be repaired unless it is achieved in the formative stages, which is less than five years. We need to talk about the GST extension, but first we need to meet "According to reports, Badal said.
West Bengal requested that the Centre move its outstanding debts immediately, claiming that it had only earned a small sum. It had also written to Finance Minister NirmalaSitharaman, requesting that donations to the chief minister's relief fund be labelled with a corporate social responsibility tag. GST Registration is must for the same.
Individually, the states will approach the Centre to raise the issue of GST compensation, which has been pending since December 2019.
The Centre recently paid Rs 34,053 crore in pending GST reimbursement cess for October and November in two instalments, with the second instalment revealed earlier this month.
Kerala has already reported that it is facing a financial crisis and has asked the federal government for additional funds.