In a significant decision, the GST Council, during its meeting on October 7, has approved the exemption of extra neutral alcohol (ENA) from the Goods and Services Tax (GST) when it is supplied for the manufacturing of alcoholic beverages. This exemption encompasses both grain-based and molasses-based ENA, as reported by CNBC-TV18.
Furthermore, the council has also agreed to exempt ENA from Value Added Tax (VAT) when it is supplied for industrial purposes, indicating a broader relaxation of tax provisions for this substance.
In another development from the 52nd Goods and Services Tax (GST) Council meeting, tax rates for millet flour food preparations have been significantly reduced, according to sources cited by news agency ANI. The existing tax rate of 18% on millet flour food preparations has been lowered to a more affordable 5%. Millet flour is renowned for its nutritional value and health benefits, making it increasingly popular among health-conscious consumers in India. The reduction in GST rates for millet flour food preparations aims to enhance their accessibility to the public.
The ongoing 52nd GST Council meeting is taking place at the Sushma Swaraj Bhawan in New Delhi and is headed by Finance Minister Nirmala Sitharaman. The meeting is attended by Union Minister of State for Finance, MP Poonia, as well as finance ministers from various states and Union Territories (with Legislature), along with senior officials from the Union government and the states.
Additionally, it is expected that the GST Council will evaluate the states’ progress in implementing the alterations related to the taxation of online gaming in their respective State Goods and Services Tax (SGST) laws, which were approved during the 51st council meeting.
Furthermore, there are reports indicating that the GST Council may offer clarifications regarding the taxation of bank and corporate guarantees furnished by directors and promoters to a company.
The GST Council convenes periodically to discuss matters related to the GST regime, including tax rates, policy changes, and administrative matters. The 52nd meeting aims to address critical issues affecting the Indian tax system and collaborate on solutions. The GST Council plays a pivotal role in shaping India’s indirect tax structure, ensuring alignment with the country’s economic objectives and providing relief to both citizens and businesses.
