GST Council, No GST Will be Charged on These 14 Items
The GST Council recently announced that no GST would be charged on 14 items, including critical life-saving drugs, medical-grade oxygen, and ventilators. This decision was made to provide relief to the public amidst the ongoing COVID-19 pandemic. The council also decided to reduce the tax rate on certain COVID-related essential goods such as Remdesivir and Tocilizumab.
In addition to healthcare essentials, the GST Council has exempted various other items from GST, including Tamarind kernel powder used in textile printing, the supply of gold by nominated agencies to exporters of articles of gold jewelry, and certain parts of electric vehicles. These decisions were taken based on recommendations from various industry bodies and stakeholders.
Overall, these decisions by the GST Council are aimed at providing some relief to individuals and businesses during these challenging times. The exemption of fundamental healthcare essentials is significant as it ensures their availability at affordable prices for those in need.
List of exempted items
The Goods and Services Tax (GST) Council has announced that no GST will be charged on 14 items exempted from the tax. These items include food products such as fresh meat, fish, milk, eggs, and vegetables. This move aims to reduce the burden of GST on ordinary people who rely heavily on these essential items.
Apart from food products, medical supplies like medicines and vaccines have also been exempted from GST. This exemption is expected to relieve patients suffering from various illnesses who often have to bear the high medication cost.
In addition to this, education-related services such as textbooks and educational materials have been excluded from GST. Students and their families will not have to pay additional taxes when purchasing books or other study materials necessary for their education. These exemptions are expected to provide significant relief to the commoner by reducing their daily expenses and making essential goods more affordable.
Relief for the commoner
The GST Council’s recent decision to exempt 14 essential items from the Goods and Services Tax (GST) is a welcome relief for the commoner. These items include critical drugs, medical oxygen, testing kits, ventilators, and other COVID-19-related supplies. The move comes as India grapples with the second wave of Coronavirus infections, pushing up demand for medical equipment and supplies.
Exempting GST on these items will make them more affordable for people facing financial hardships due to the pandemic. It will also help reduce the burden on healthcare providers at the forefront of battling COVID-19. Additionally, this move aligns with the government’s efforts to provide healthcare facilities to all citizens at an affordable cost.
In conclusion, this decision by the GST Council is a much-needed relief for the commoner during these unprecedented times. The government should continue exploring ways to ease financial burdens and support those affected by COVID-19. This step towards exempting GST on essential items is one such measure that can go a long way in helping people cope with these challenging circumstances.
Impact on businesses
The Indian government’s decision to exempt 14 items from Goods and Services Tax (GST) is expected to impact businesses significantly. The move, which the GST Council announced, aims to reduce the burden on consumers amid the ongoing pandemic.
The items exempted from GST include medical-grade oxygen, concentrators, ventilators, COVID-19 testing kits, pulse oximeters, hand sanitizers, and temperature check equipment. The decision is a relief for consumers already facing high prices of essential health-related goods due to the surge in demand during the second wave of COVID-19.
The exemption of GST on these items will benefit consumers and small businesses struggling due to high input costs. With reduced tax liability, these businesses can offer these essential goods at lower prices without compromising their profit margin. Overall, this move is expected to improve the accessibility and affordability of critical healthcare products for all sections of society.
Challenges for manufacturers and retailers
Manufacturers and retailers face several challenges in the current business environment. One of the significant challenges is the constantly changing consumer preferences. With technology revolutionizing every aspect of life, consumers are becoming more aware of their choices and demanding customization. This puts pressure on manufacturers to produce goods that cater to individual needs, which can take time and effort.
Another challenge for manufacturers and retailers is competition from e-commerce giants like Amazon and Alibaba. These companies offer lower prices, faster delivery times, and a more comprehensive range of products than traditional retailers can provide. To compete with these players, brick-and-mortar stores must invest in technology to streamline operations, enhance customer experiences, and provide real-time inventory data.
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Moreover, with the introduction of Goods and Services Tax (GST) in India in 2017, manufacturers and retailers have had to deal with tax compliance issues such as filing returns on time, claiming input tax credits correctly, maintaining proper records, etc. However, recently GST council announced that no GST would be charged on 14 items which would bring some relief for both parties involved in those businesses. The frequent changes made by government authorities regarding taxation laws add another layer of complexity that manufacturers & retailers need to navigate effectively.
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