Among other key decisions taken by the GST Council today, tax on millet flour food preparations has been slashed from the current 18 per cent GST to 5 per cent.
ADITYA RAJ DAS / NEW DELHI
The GST Council today clarified that guarantees provided by corporates to their subsidiaries will attract an 18 per cent GST, while no tax will be levied if a personal guarantee is given by a director to the company. The council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, also cut the GST rate on molasses to 5 per cent from 28 per cent.
Briefing the media after the conclusion of the meeting, Finance Minister Nirmala Sitharaman said, several important decisions were taken relating to GST Appellate Tribunals, GST on millets and molasses. She said, the council has taken a 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 in a pre-packaged and labeled form, it will attract 5 percent GST. Talking about the amendments regarding GST Appellate Tribunal, she said, the President will now have the tenure up to the maximum age of 70 years from 67 years earlier, while the members’ will have the tenure upto the maximum age limit of 67 years from 65 years earlier.
She added that the minimum age for the appointment of President and members in the GST Appellate Tribunal will be 50 years and advocates with a minimum of 10 years of experience will be considered for the appointment of judicial member in the Tribunal.
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 the 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.