IGST exemption likely on cancer drug imports

New Delhi The GST Council at its next meeting on Tuesday is likely to exempt cancer medicine Dinutuximab imported by individuals from tax, decide on applicability of GST on food or beverages served in multiplexes and come out with a clear definition of utility vehicles for levying a 22 per cent cess, sources said.

The Council, chaired by Union finance minister and comprising state ministers, will also decide on GST exemption for satellite launch services provided by private players. Besides, import of medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases for personal use and also by centres of excellence are likely to be exempted from Integrated GST. Currently, such imports attract an IGST of 5 per cent or 12 per cent. The fitment committee, comprising central and state tax officers, has recommended to the Council to clarify on these major issues at the 50th meeting of the Council on July 11. In addition to the recommendations of the fitment committee, the Council will also consider the GoM report on online gaming, finalise contours for setting up appellate tribunal, and demand of the industry for reimbursement of full CGST and 50 per cent IGST in 11 hill States under the ‘scheme for budgetary support’. With regard to rates, the fitment committee has recommended to the Council to define Multi Utility Vehicles (MUV) or multipurpose vehicles or crossover utility vehicles (XUVs) at par with the Sports Utility Vehicles (SUVs) for levy of a 22 per cent compensation cess over and above the 28 per cent Goods and Services Tax (GST) rate, sources said. The committee has recommended that all utility vehicles, by whatever name called, would attract 22 per cent cess provided they meet three parameters -- length greater than 4-metre, engine capacity greater than 1,500 cc and ground clearance in ‘un-laden condition’ of more than 170 mm.