The 45th GST Council Meeting, headed by Union Finance Minister Nirmala Sitharaman was held in Lucknow at Hotel Taj on Friday, September 17. It was assumed that the council might consider taxing petrol, diesel and other petroleum products under the single national GST regime. In Delhi, at present, petrol is priced at ₹101.19 per litre and diesel at ₹88.6 On Friday, Nirmala Sitharaman said that the petrol, diesel GST was on the agenda of the GST council only because of the Kerala high court order. Finance minister Nirmala Sitharaman clarified the speculation of fuel prices going up, “This item came on the agenda for today’s discussion purely because Kerala high court order as some person approached the high court and the court said that this can be taken up by the GST Council. On the direction of the court, it was brought up and the members spoke very clearly that they do not want this under GST.” She further added, “States have unanimously rejected the proposal of bringing petrol and diesel under GST which will be conveyed to the Kerala high court.” Sitharaman said this was not right time to bring petrol under the ambit of GST.
Rajat Bose, partner, Shardul Amarchand Mangaldas & Co, said, “The GST Council agreed that this was not the right time to bring petroleum products and natural gas under GST ambit, which was contrary to the expectations of the general public , and considering that most States strongly denied this proposition, it seems that these goods are not likely to be subsumed in GST anytime soon.”
The GST council on Friday discussed various issues including imposing GST on Swiggy and Zomato, fuels under GST, Concession on Medicines and Compensation to States. Reports says that the proposal of imposing GST on Swiggy and Zomato is approved by the council. Finance Minister, Nirmala Sitharaman, said, “E-commerce operators Swiggy and Zomato to pay GST on restaurant service supplied through them, and tax to be charged at the point of delivery.”
The proposal of reducing GST from 12 per cent to 5 per cent to the seven more drugs till December 31, 2021 has been approved by the GST Council. According to sources, the drugs are 2-Deoxy-D-Glucose and Favipiravir, Posaconazole, Itolizumab, Infliximab, Bamlanivimab and Etesevimab, Casirivimab and Imdevimab.
This was the first time after pandemic that physical meeting took place. Last time physical meeting was held on December 18, 2019, before the pandemic. Now this was the first time after COVID that the physical meeting was held. After so many speculations, in the meeting, finance Minister Niramala Sitharaman, made it clear petrol and diesel will not come under GST.