KEY HIGHLIGHTS
52nd Meeting Of The Goods and Services Tax
The 52nd meeting of the Goods and Services Tax Council could take up technical matters like offering clarity on the slew of demand notices and a possible rate exemption on millet-based foods, according to an official.
The fitment committee report has maintained the status quo on many issues that were raised by the industry over time, the official with knowledge of the matter told BQ Prime on the condition of anonymity.
Likely Agenda
Millet-based foods in powdered form are likely to get an exemption, according to the official.
Currently taxed at 18%, millets have been promoted under India's G20 presidency. The year 2023 was also declared the International Year of Millets by the United Nations General Assembly in 2021.
A series of demands over an alleged tax shortfall, extending from the gaming industry to the insurance and auto sectors, have been issued by GST authorities recently.
Delhi Will Seek Withdrawal Of Tax Notices On Online Gaming Companies: Delhi Finance Minister Atishi
"In the meeting today, I am going to take up this issue and ask the GST council to make sure that these notices are withdrawn", says Delhi finance minister Atishi.
Atishi emphasized that more than 50,000 young individuals work in this sector, and it has also received foreign investments totaling Rs 17,000 crore. Therefore, it is crucial to withdraw the notices in order to safeguard the industry.
(With inputs from PTI)
Union Finance Minister Will Chair 52nd GST Council Meeting At Sushma Swaraj Bhawan, New Delhi
52nd GST Council: TS Singh Deo, Chhattisgarh Dy CM
52nd GST council meeting outcomes as following :
Decisions of 51st meeting on online gaming were ratified.
States like Delhi and Goa have raised the issue of retrospective taxation
Clarification on differential treatment for alcohol for human consumption, industrial use.
ENA on human consumption out of GST council preview
GST reduction on molasses from 18% to 5% approved
Source: Sidelines of GST council meeting
52nd GST Council: Deepak Vasant Kesarkar, Maharashtra Minister
Eligibility of advocates with 10 years of experience for the post of judicial member received approval.
Millets sold in packaged and labelled form to be taxed at 5% from previous 12%.
GST on rent for hostels where room rent is below Rs 1000/day to be exempted.
Forward charge mechanism for taxation w.r.t Indian railways discussed.
Issue of Corporate guarantee also raised.
Source: Sidelines of GST Council
52nd GST Council
No assurances from the centre on the taxation liability of gaming platforms, we hope it would be considered going forward.Delhi Finance Minister Atishi
Tenure Of President Of GST Appellate Tribunal Up To 70 Years From Earlier 67 Years
The council decided to make amendments to the constitution of the GST Appellate Tribunal
The President shall have a tenure up to a maximum age of 70 years as compared to 67 earlier
Member shall have a tenure up to a maximum age of 67 years as compared to 65 earlier
Minimum age of appointment of President and member to be 50 years
FM Says No Tax Rate On Millet Flour When Sold Loose, 5% GST On Pre-Packaged
Millets in powder form, where millets are less than 70%, will have 0% GST if sold without packaging.
Millets in powder form, where millets are less than 70%, will have 5% GST if sold pre-packaged and in labelled form.
GST Rate Notification To Be Amended For Extra Neutral Alcohol For Industrial Use At 18%
GST Council had the right to tax Extra Neutral Alcohol (ENA)
The GST Council has ceded the right to tax ENA to the states
GST rate notification will be amended to create an entry of ENA for industrial use.
Entry of ENA for industrial use shall attract 18% tax
Alert: Extra Neutral Alcohol is used to make alcohol for human consumption
GST On Molasses Reduced To 5% From 28% Earlier
The tax rate on molasses, a by-product of sugarcane and used as raw material for alcohol production, has been reduced to 5% from 28% currently, Chhattisgarh Deputy Chief Minister TS Singh Deo said.
(With inputs from PTI)
Foreign Flagged And Foreign Vessels Exempted From IGST For Coastal Run
The step has been taken to promote tourism, says FM Sitharaman.
Council Recommends Time Till Jan 31, 2024 For Filing Of Appeals By Taxpayers For All Orders Passed Till Mar 31, 2023
Pre-deposits for appeals during the extended time to be 2.5% of the amount in dispute.
Entire Spectrum Of Services Provided By Railways Will Be Now Subject To Forward Charge
Corporate Guarantee Given By Company To Its Subsidiary Will Attract 18% GST On 1% Of Total Amount Guaranteed By Parent Company
When a corporate guarantee given by a director to a company, the value of the service provided by way of guarantee will be treated to be zero or the consideration provided says Revenue Secretary Sanjay Malhotra.
Generally, there is no consideration provided because the director himself guarantee and there is no consideration, which is given to him for it.
So, it will not attract any GST because the value will be deemed to be NIL unless some consideration is paid, Malhotra added.
Similarly, when a corporate guarantee is given by a company to its subsidiary then it will be deemed that the value is 1% of the corporate guarantee. So it will attract GST at the rate of 18% on 1% of the total amount guarantee by the parent company, Malhotra said.
On Online Gaming Tax Demand
There was some discussion on it, certain members did raise this issue, say revenue secretary Sanjay Malhotra.
"And it was informed to them that this is not retrospective in any way because this is how the law was earlier. The law has not been amended retrospectively. These liabilities were already existing", Malhotra said.
LIVE: FM Sitharaman's Address Post 52nd GST Council Meeting
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