GST Council exempts extra neutral alcohol levy, reduces rates on millet flour
The Goods and Services Tax (GST) Council has chosen to delegate the taxation of Extra Neutral Alcohol (ENA), which is used for the manufacture of portable alcohol, to the states. Furthermore, it has reduced the levy rates on millet flour and molasses.
Union Finance Minister Nirmala Sitharaman arrives to chair the 52nd meeting of the GST Council, at Sushma Swaraj Bhawan in New Delhi on Saturday. (Jitender Gupta)
Announcing the decision, Union Finance Minister Nirmala Sitharaman said that despite the GST Council having full authority to levy charges on ENA, it is ceding the right to tax the distilled alcohol used for human consumption to states. ENA for industrial use will continue to attract GST.
Along with this, informing about the millet flour rate cut, she said that if the flour is unpackaged and contains at least 70 per cent millet, it will be subject to a zero per cent tax rate. However, if it is packaged and labelled, it will incur a five per cent tax rate.
In addition to this, GST Council in its 52nd meeting also lowered the GST tax on molasses from 28 to 5 per cent. “It will benefit sugarcane farmers, lower cattle feed cost,” Sitharaman said.
Sitharaman said, “The president and the members shall have a tenure up to a maximum age of 70 years. Earlier, this was 67. For the president and the members, it was 67 and 65 respectively. Whereas what we’ve now done is the tenure can be up to 70 and 67, respectively…”
The 52nd meeting of the GST Council, under the chair of Nirmala Sitharaman was held at Sushma Swaraj Bhawan in New Delhi on Saturday. Along with the union finance minister, union minister of state for finance, chief ministers of Goa and Meghalaya, besides finance ministers of states & UTs (with legislature) also attended the meeting.
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