Nil GST on flour containing 70 pc millets, GST Council cedes right to tax neutral alcohol
New Delhi, Oct 7 (FN Bureau) The GST Council chaired by Union Finance Minister Nirmala Sitharaman on Saturday decided to levy no GST on flour containing 70% millets by weight. While there will be no GST in case of such flour sold loose, the packaged and labelled flour containing 70% millets will attract 5% GST. In another rate cut decision, the Council recommended to slash GST on molasses from 28% to 5%. Briefing the media after 52nd GST Council meeting, Sitharaman said that the move would benefit the sugarcane farmers as this will enable faster clearance of their dues by sugar mills. “The Council and we all feel that it will also lead to a reduction in the cost of manufacturing of cattle feed, which will be a major development,” the Minister said. Among other key decisions, the GST Council recommended to keep Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside GST.
Law Committee will examine suitable amendment in law to exclude ENA for use in manufacture of alcoholic liquors for human consumption from the ambit of GST. “..In the interest of states, Centre (GST Council) has ceded the right to tax extra neutral alcohol (ENA) to states. So, despite having the legislative competence to tax ENA under the GST, the Centre is ceding the space to states,” said Sitharaman during media briefing. The Minister further said that GST rate notification will be amended to create an entry for ENA for industrial use and that shall attract 18% tax. GST Council also cleared amendments in conditions of appointment of President and Member of the proposed GST Appellate Tribunals regarding eligibility and age.
Accordingly, President and Members of the Tribunal shall have tenure up to a maximum age of 70 years and 67 years respectively. In order to promote tourism, the Council recommended conditional and limited duration IGST exemption to foreign flag foreign going vessels when it converts to coastal run. During the meeting of the Council, Delhi Finance Minister Atishi raised the issue of 28% tax on online gaming industry. Responding to a question on the issue, Revenue Secretary Sanjay Malhotra clarified that the tax is not retrospective in any way and that the law has not been amended retrospectively. He added that the laws already existed. In decisions related to trade facilitation, the Council has recommended an Amnesty Scheme for GST tax payers for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period.