GST Council Recommendations: Decisions regarding changes in GST tax rates have been taken in the 52nd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman. GST rate on millets i.e. coarse grains and jaggery was reduced.
In the 52nd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, several recommendations were made related to changes in GST tax rates, measures to facilitate business and measures to streamline compliance in GST. GST rate on millets i.e. coarse grains and jaggery was reduced. At the same time, extra neutral alcohol used in making liquor has been kept out of the tax net.
Tax rate reduced on coarse grains
GST rates on edible preparations of millet flour in the form of powder falling under HS 1901, containing not less than 70% millet by weight, have been prescribed as follows, with effect from the date of notification –
- 0% – If sold in any form other than pre-packed and labeled form.
- 5% – If sold in pre-packed and labeled form.
It is clarified that job work services related to processing of barley into malt attract GST at the same rate as job work related to food and food products at the rate of 5 percent and not at the rate of 18 percent.
Extra Neutral Alcohol (ENA) out of GST
The GST Council has recommended keeping Extra Neutral Alcohol (ENA), used in the manufacture of alcoholic liquor for human consumption, out of GST.
GST rate reduced on jaggery
GST on jaggery was reduced from 28% to 5%. With this step, the cash with the mills will increase and sugarcane farmers will be able to get faster payment of sugarcane dues. This will also reduce the cost of manufacturing animal feed, because jaggery is also an ingredient in its manufacturing.
Changes in GST rates of services
The GST Council has also recommended exempting services like water supply, public health, sanitation protection, solid waste management and slum improvement and upgradation supplied to government authorities.
District Mineral Foundation Trusts (DMFTs) established by various State Governments in mineral mining areas across the country are Government authorities and hence they are eligible for the same exemption from GST as is available to any other Government authority.
The liability to pay GST on bus transport services supplied through Electronic Commerce Operators (ECOs) from January 1, 2022 has been placed on ECOs under Section 9(5) of the CGST Act, 2017. This step to facilitate trade has been taken on the representation of the industry association.
Indian Railways will tax all supplies of goods and services under the forward charge mechanism so that they can avail the benefit of ITC. This will reduce the cost of Indian Railways.
Issue a circular clarifying that when no payment is made by the company to the director in any form directly or indirectly for providing personal guarantee on its behalf to the bank or financial institutions, the said transaction or supply The open market value will be treated as nil and hence, no tax will be payable in respect of such supply of services.
Appellate Tribunal Appointment Eligibility
An advocate of ten years’ standing and having adequate experience of litigation in indirect tax laws in the Appellate Tribunal, Central Excise and Service Tax Tribunal, State VAT Tribunals, or tribunals by other names known, High Court or Supreme Court, as Judicial Member Will be eligible for appointment.
The minimum age to be eligible for appointment as Chairman and Member should be 50 years.
The tenure of the Chairman and members will be till the maximum age of 70 years and 67 years respectively.
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