GST on molasses will be reduced from 28% to 5% which will benefit sugarcane farmers, says FM Nirmala Sitharaman.
Updated, Oct. 07, 2023. 6.14 PM.
The 52nd GST Council meeting was held in New Delhi today under the Chairmanship of Union Finance Minister Nirmala Sitharaman. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary along with Finance Ministers of States and Union Territories.
Briefing the media after the conclusion of the meeting, Finance Minister Nirmala Sitharaman said, several important decisions were taken about GST Appellate Tribunals, GST on millets and molasses. She said, the council has taken decision to reduce GST on molasses from 28 percent to 5 percent which will benefit sugarcane farmers. The Finance Minister also informed that flour containing 70 percent millets will attract zero percent GST if sold in other than pre-packaged and labeled form.
She added that if the same is sold pre-packaged and labeled form, it will attract 5 percent GST. Talking about the amendments regarding GST Appellate Tribunal, she said, the President will have a tenure up to maximum age of 70 years while the members will have a tenure of maximum age limit of 67 years.
The Finance Minister also said that the GST Council has ceded the right to tax extra-neutral alcohol (ENA) to states. GST Council has recommended keeping Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside the GST. The Law Committee will examine suitable amendments in law to exclude ENA for use in manufacture of alcoholic liquors for human consumption from ambit of GST.
The GST Council has also recommended exempting services of water supply, public health, sanitation conservancy, solid waste management, and slum improvement and upgradation supplied to Governmental Authorities. The Council also recommended that supply of all goods and services by Indian Railways will be taxed under Forward Charge Mechanism to enable them to avail Input Tax Credit which will reduce the cost for Indian Railways.