GST Council Meeting: Flour Containing 70% Millet Exempted From GST; Tax On Molasses Slashed To 5%

The 52nd GST Council Meeting has started today (Saturday). Industry stakeholders, especially online gaming companies have been keenly awaiting today's meeting which is chaired by Finance Minister Nirmala Sitharaman and includes state finance ministers.

Ahead of the meeting, Delhi and Goa had reportedly raised the issue of retrospective taxation on online gaming companies.

Some of the important decisions from today's GST Council Meet include:

• GST on molasses slashed from 28% to 5%. The move will benefit sugarcane farmers and lower cattle feed costs, says Nirmala Sitharaman
• Zari GST rate slashed to 5% from 18%
• No GST on the corporate guarantee given by the director of a company
• Services provided by Railways will now be subject to forward charge
• Foreign-owned coastal vessels doing coastal runs in India are exempted from IGST
• The GST Council has ceded the right to tax the extra neutral alcohol (ENA) to states
• ENA for industrial purposes will come under GST. The GST on ENA for industrial use to be 18%
• Food preparation of millet flour containing at least 70% of the composition by weight, will be exempted from GST when sold loose without branding
• GST on Millet's flour preparation reduced to 5% from 18% on branded pre-packaged and labeled
• The tenure of the President of GSTAT increased to 70 years of age from 67 years earlier.