Tax can be reduced on products made from liquor and millets, these decisions can be taken in the GST Council meeting. - Newztezz Online


Saturday, October 7, 2023

Tax can be reduced on products made from liquor and millets, these decisions can be taken in the GST Council meeting.

Many big issues are likely to be discussed in the 52nd meeting of the GST Council. At the same time, some decisions of the meeting may shock many companies. Let us know on which issues the decision can come today...

The 52nd meeting of the GST Council is to be held today. In this meeting, liquor companies are expected to get relief on the GST front. GST rates on millet products are also expected to be reduced. Apart from this, many big issues are likely to be discussed in the meeting. According to the information, the GST meeting may also bring bad news for some companies. A decision may be taken on imposing GST on corporate and bond guarantees offered in lieu of loans.

Decision on these may be taken in GST meeting

Liquor companies may get relief from the GST Council in the GST meeting to be held on Saturday. According to media reports, the GST Council may consider reducing GST on molasses from 28% to 5% to provide clarity to the liquor industry. According to experts, the Council can give clarity to the Centre, states and industry on taxation on ENA (Extra Neutral Alcohol). The Council also has no intention of imposing tax on ENA used to produce alcoholic liquor for consumption.

Apart from this, there can be discussion regarding reduction in GST rates on millet i.e. coarse grain. Millets i.e. coarse grains, are those grains whose production does not require much effort. These grains grow even in less water and less fertile land. Compared to paddy and wheat, water consumption is very less in the production of coarse grains. There is no need of urea and other chemical fertilizers in its cultivation. Therefore these are considered better for many reasons. Besides this, farmers also get more profits at lower costs.

There are preparations to impose GST on corporate guarantees offered to companies in lieu of loans. This GST will be 18% on 1% of corporate guarantee or bond.

Clarification may come on GST rates on Insurance Premium. Due to lack of clarification, states have sent GST notices to many insurance companies including LIC.

This agenda was included in the meeting

The GST Council can also take a decision on implementing reverse charges mechanism on steel scrap.

The Council can give detailed explanation in case of advertising services, data centre, mail and courier services.

The council is also considering exemption from GST on gardening services provided on contract for maintenance of public parks and lawns.

To allow lawyers with 15 years of practice to be eligible as Judiciary Members in the GST Tribunal and the Chairperson of the Appellate Tribunal, the upper age limit may be increased from 63 to 67 years.

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