GST Council Meet: Tax Rate On Molasses Slashed To 5 Percent, Alcohol For Consumption Exempted

The GST Council has also decided to levy a lower 5 percent tax on millet-based flour when sold in pre-packaged and labelled form, Finance Minister Nirmala Sitharaman said.

New Delhi: The GST rate on molasses has been slashed to 5 percent from the earlier 28 percent while alcohol for human consumption was exempted from levy during GST Council meeting in the national capital on Saturday.

Extra neutral alcohol (ENA) for industrial use will continue to be taxed under the Goods and Services Tax (GST) slab while potable alcohol for human consumption will be exempted from levy, Chhattisgarh Deputy Chief Minister T S Singh Deo told news agency PTI.

“ENA (potable alcohol) for human consumption will be exempt from GST and the same will be communicated to the Supreme Court,” Deo, who is a member of the GST Council, told reporters after the 52nd GST Council meeting.

The tax rate on molasses, a by-product of sugarcane and used as raw material for alcohol production, has been reduced to 5 percent from 28 percent currently, Deo added.

He further said that some states like Delhi and Goa raised the issue of online gaming companies facing GST demand notice for alleged evasion.

“There were discussion on charges (tax demand notice) on these companies retrospectively. Because DGGI is an independent body, there cannot be any interference. The (GST Council) chairperson said she would make clarifications available to DGGI, if required,” Deo said.

The GST Council has also decided to levy a lower 5 percent tax on millet-based flour when sold in pre-packaged and labelled form, Finance Minister Nirmala Sitharaman said.

Flour, containing at least 70 per cent millets, will attract zero per cent GST if sold loose, and 5 percent if sold pre-packaged and labelled, the Finance Minister said.

The 52nd GST Council meeting, chaired by Union finance minister and comprising state counterparts, also decided to cap the maximum age of President and members of the GST Appellate Tribunal (GSTAT).

The GSTAT President will have a maximum age cap of 70 years, while the limit for members will be 67 years.

This is a change from the earlier age limit of 67 and 65 years, respectively, for the President and members of GSTAT.

(With PTI inputs)