COVID import relief to compensation for states: GST council meet highlights

Finance Minister Nirmala Sitharaman chaired the 43rd Goods and Service Tax (GST) Council meeting through video conferencing on Friday.  In a press conference post the meeting, the minister said that issues of COVID-related equipment were discussed in detail. 

Here are the key decisions that were taken during the meeting:

1. Import of COVID relief items exempted till August 31, 2021

2. Import of medicine used for treating black fungus has been exempted from levy of I-GST

3. Amnesty scheme for small GST taxpayers has been announced, which allows the filing of returns with reduced late fee

4. Centre to borrow Rs 1.58 lakh crore to compensate states for loss of revenue from GST

5. Annual Return filing to be optional for FY 2020-21 for small taxpayers, who have a turnover of less than Rs 2 crores

6. Reconciliation statements for 2020-21 will be furnished only by those taxpayers whose turnover is Rs 5 crores or more

7. GoM will consider GST exemption on COVID vaccines provided by private hospitals

8. GST council will hold a special session to discuss extending paying compensation to states beyond 2022