Swiggy, Zomato to pay GST from Jan 22, Covid vax export restrictions may ease

Sitharaman recommended a 5 percent GST rate on online food delivery firms without input tax credit

The Goods and Services Tax (GST) Council decided on Friday to tax online food delivery fims such as Swiggy and Zomato on behalf of restaurants from January 2022.

 

The GST Council Meeting, chaired by Union Finance Minister Nirmala Sitharaman, also let occ expensive life-saving drugs from indirect tax, inflated concessional rates on Covid-19 related drugs for three more months.

 

The Finance Minister had also addressed the issue of inverted duty structure in textiles, footwear, pens, specified renewable energy devices, as well as parts of locomotives among other items.

 

Though the GST Council had decided against bringing petroleum products under the GST regime presently, Sitharaman added while addressing the media after the 45th GST Council Meeting that was held in Lucknow.

 

Sitharaman recommended a 5 percent GST rate on online food delivery firms without input tax credit.

 

Nirmala Sitharaman said that several restaurants were found to be not depositing GST with the central government and even some were not even registered.

 

Sitharaman said life-saving drugs including Zolgensma and Viltepso that are priced at about rupees 16 crore which are used for curing muscle atrophy would be relief from GST if imported for personal use.

 

Apart from this, the Council had reduced GST on remdesivir as well as indulging rates of the tax on other Covid-19 related drugs will be extended until December 31.

 

Though, the indulging rate on equipment used to cure Covid-19 will expire this month and also, GST on drugs such as Keytruba would be reduced from 12 percent to 5 percent.

 

The Finance Minister said that the Council has also exempted transport of goods for export purposes by vessel and air for more one year to help exporters.

 

Nirmal Sitharaman added that such relief would also be made available to special economic zones.

 

The GST Council also ease aircraft and other goods imported on lease from integrated GST to address the issue of double taxation.

India Scanner News Network

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