GST Council Meet: Tax Levied On Pre-Packed Millets, Centre Cedes Power Of GST On ENA And More

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.

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.

Pre-deposits for appeals during the extended time to be 2.5% of the amount in dispute.

The step has been taken to promote tourism, says FM Sitharaman.

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)

• 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

• 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.

• 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

• 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 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

"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)

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.

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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.