REQUEST FOR EXEMPTION OF GST ON VACCINES
Domestic supplies and commercial imports will be more expensive for customers, according to Finance Minister Nirmala Sitharaman. Manufacturers will not be willing to cover the taxes charged on inputs and move them on to customers in the form of high prices if GST exemption were provided for domestic suppliers and industrial imports of Covid-related medicines, vaccinations, and oxygen concentrators.
A 5% GST rate ensures that the manufacturer can use ITC (input tax credit) to demand a refund if there is an overflow of ITC. As a consequence, exempting vaccinations from GST is pointless and does not benefit consumers. In actuality, a 5% GST is favorable to domestic vaccine makers and civilians, according to a tweet from Finance Minister. If an item is subject to IGST of Rs 100, the states and the Centre would each collect Rs 50 in SGST and CGST, according to the Finance Minister States ultimately receive 41% of CGST revenue in the form of devolution. As a result, the states earn Rs 70.50 out of a total collection of Rs 100.
CM Mamata Banerjee’s letter to Prime Minister Narendra Modi demanding a GST exemption on Covid-19 vaccines and supplies. Many organizations, persons, and agencies involved in the donation of Covid related products, oxygen concentrators, cylinders, cryogenic storage tanks, and tank containers have approached the state government to consider exemption of these objects from customs duty/State GST/Central GST/Integrated GST (IGST), according to Banerjee’s letter.
Extending the deadlines for the taxpayer of certain compliances
In exercising its authority under Section 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes reduces the following income-tax compliance criteria for taxpayers:
- Appeals to the Commissioner (Appeals) under Chapter XX of the Income-tax Act, 1961, with a due date of 1′′ April 2021, must be filed within the time specified by that Section or by 31′′ May 2021, whichever comes first.
- Objections to the Dispute Resolution Panel (DRP) filed under Section 144C of the Income-tax Act, 1961, having a due date of April 1, 2021, or later, must now be filed by May 31, 2021.
- Income-tax returns under section 148 of the Act, with a due date of 1″ April 2021 or later must be submitted within the period allowed by the notification or by 31″ May 2021.
- The filing of a belated return under Section 139 of the Income-tax Act of 1961, which was due on or before March 31, 2021, has been pushed out to May 31, 2021.
- Payment and filing of challan-cum-statement for tax deducted under Sections 194-IA, 194-IB, and 194M of the Income-tax Act, 1961, which must be invoiced and presented by May 31, 2021, are scheduled to be paid and given by 30 April 2021.
- Form No. 61, which is due on or before April 30th, 2021, and contains information of declarations received in Form No. 60, must be filed on or before May 31st, 2021.