Structural changes in GST

Correction to revenue-neutral rate must not be delayed

The Goods and Services Tax (GST) Council’s 45th meeting in Lucknow last week took several important decisions and set the ball rolling for two structural changes. The council extended concessional rates for several drugs, such as Remdesivir, used to treat Covid-19. It also reduced duty on some other drugs like Itolizumab and Posaconazole till December. Since the pandemic is unlikely to end by December, the council could have easily extended the concession at least till the end of this fiscal year. It further decided to correct the inverted duty structure in textile and footwear, which was discussed in earlier meetings.