52nd Goods and Services Tax (GST) council meeting took place on 7th October 2023 at Sushma Swaraj Bhawan, New Delhi. The meeting was presided by Smt Nirmala Sitharaman, the Union FM and attended by MoS (F) Shri Pankaj Chaudhary, the Revenue Secretary, Chairman CBIC, Member CM, Member GST, Member TP and senior officers from Union Government and States.
From the meeting, here is some key takeaways:
- GSTAT Amendments: The tenure of president of GSTAT increased to 70 years of age from 67 years earlier. The members can hold their post till the attain the age of 67 years as opposed to 65 years earlier. The minimum age for president and members to be 50 years.
- GST on Extra Neutral Alcohol: On Extra Neutral Alcohol (ENA), Union Finance Minister Nirmala Sitharaman says, “GST Council today has ceded that right to tax ENA to the states. If the states want to tax it, they are welcome to do it. If the states want to leave it, they are welcome to take a call on it. The GST Council is not taking a call to tax it, although the right to tax lies here.” Reportedly, the GST on ENA for industrial uses to be 18%.
- Coastal-Vessels: In the Press briefing Nirmala Sitharaman said Foreign-owned coastal vessels doing coastal runs in India are exempted from Integrated Goods and Services Tax (IGST). IGST is an essential component of India’s Goods and Services Tax (GST) system, designed to regulate the taxation of inter-state transactions of goods and services. The existing IGST is 5%.
- Millet Flour: As per the recent GST council meeting, FM Sitharaman declared that there will be no tax rate on millet flour containing 70% composition. Additionally, the minister added GST on Millets flour preparation reduced to 5% from 18% on branded and pre-packaged and labelled.
- Corporate guarantee: As per the press announcements, no GST on corporate guarantee given by the director of a company. Moreover, in case of Corporate guarantee given by holding companies, GST of 18% of total amount guaranteed by parent company will be levied.
- Molasses cut: GST on molasses decided to be reduced from 28% to 5%. According to the minister, the move will benefit sugarcane farmers, lower cattle feed cost.
- Railway Services: The entire spectrum of Railway services will no subject to forward charge
- The Finance Minister asserted that the council may discuss the road map for the compensation cess in future.
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