The 52nd GST Council meeting in New Delhi has come to a close. As stated by Finance Minister Nirmala Sitharaman in the press conference, a number of choices were made in the meeting, including a tax reduction on millet flour, molasses, and more.
The GST Council recommends a nil rate for millet flour in powder form that is sold in loose form and contains at least 70% millet by weight, and a 5% rate if it is supplied in pre-packaged and labelled form for use in food preparation.
The GST Council recommends storing Extra Neutral Alcohol (ENA), which is utilised in the production of alcoholic beverages for human use, outside.
GST Council approves a change clarifying that the GST rate on ENA used for industrial purposes will be 18%.
The GST Council recommends reducing the GST on molasses from 28% to 5% to provide relief
to cane producers, speed up the payment of debts, and lower the cost of producing cattle feed.
The Council has suggested issuing a circular to specify whether export remittances received in Special INR Vostro account are eligible for input tax credit.
The Council will talk about the roadmap for cess at subsequent meetings now that the period for compensating the states is over.
The issue of tax notices being sent to states retroactively affecting the startup industry was brought up by some governments, including Delhi.
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Source: Money Control
