Big GST relief for millets, molasses

TAX NOTICES ON E-GAMING FIRMS 'NOT RETROSPECTIVE'

- PRIYANSH VERMA

• Advocates can be GSTAT members

THE GOODS AND Service Tax (GST) Council on Saturday decided to give big tax relief to millet-based flour, in keeping with the government's policy to encourage consumption of these proteinrich grains. It also paved the way for setting up of the much-delayed GST Appellate Tribunal by defining the eligibility norms and age limits for its president and members, whereby advocates with at least 10 years of experience could also be judicial members of the tribunals.

At its 52nd meeting, the Centre-states body chaired by Union finance minister Nirmala also Sitharaman decided to keep extra-neutral alcohol (ENA) used for manufacture of alcohol for human consumption out of the ambit of GST so that states can decide how to tax it. 

The Centre-states body also decided to reduce the GST on molasses, in a move that will help the sugar industry to clear payments to sugarcane farmers on time, and reduce the cost of cattle feed.

The GST rate on prepackaged/labelled flour with 70% millet composition by weight has been cut to 5% from 18%; such flour sold loose won't attract any tax. This means the Council chose to give an even bigger tax relief to these products than the rate fitment committee recommended. The panel had proposed exemption for powdered millet, but was against any tax incentive for labelled/ branded products.

The Council clarified that in terms of personal guarantees, when no consideration is paid by the company to the director in any form, directly or indirectly, no tax will be paid in supply of such services.