GST council meeting: Centre reduces taxes on select items; Millets get significant boost - Check details

The GST Council discussed the retrospective charges placed on these companies. Due to the independent nature of the Directorate General of GST Intelligence (DGGI), the council noted that there could be no interference in their actions.

Team Newsable

First Published Oct 7, 2023, 4:27 PM IST

The Goods and Services Tax (GST) Council on Saturday (October 7) held its 52nd meeting in New Delhi and has made significant decisions to modify tax rates on various items. One notable change is the reduction in GST on powdered millet flour from the existing 18% to a lower rate of 5%. Additionally, millet flour with a composition of 70% or more will now be exempt from tax, while branded millet products will incur a 5% GST.

Another key alteration is the reduction in GST on molasses, a by-product of sugarcane used as raw material for alcohol production, from 18% to 5%. Furthermore, alcohol intended for human consumption has been completely exempted from GST.

Chhattisgarh Deputy Chief Minister TS Singh Deo, who is a member of the GST Council, stated that extra neutral alcohol (ENA) for industrial purposes will continue to attract GST.

During the meeting, concerns were raised by some states, such as Delhi and Goa, regarding online gaming companies receiving GST demand notices for alleged tax evasion. The GST Council discussed the retrospective charges placed on these companies. Due to the independent nature of the Directorate General of GST Intelligence (DGGI), the council noted that there could be no interference in their actions. However, clarifications may be provided to DGGI if deemed necessary.

The 52nd GST Council meeting, chaired by the Union Finance Minister and attended by the Union Minister of State for Finance, Finance Ministers of States and UTs (with Legislature), and senior officials from both the Union Government and states, addressed these tax rate adjustments.

In a previous meeting (51st GST Council in August), it was decided to maintain the 28% tax rate on online gaming, casinos, and horse racing, with discussions focusing on the implementation details. The 28% GST on online gaming is expected to be in effect from October 1, with a review scheduled after six months.

The tax will be applied to the initial amount paid to enter a game and not on the total value of each bet placed. Winnings obtained from these activities will remain exempt from GST and can be used for further bets. This decision to impose the 28% tax on online gaming followed three years of discussions within the GST Council and will require specific amendments for implementation.

It should be noted that the Council had previously approved a 28% tax on the full face value of bets in online gaming, casinos, and horse racing during its 50th meeting.

Last Updated Oct 7, 2023, 4:27 PM IST