In the 52nd meeting of the GST Council, a big decision was taken regarding millets i.e. coarse grains. At the same time, the way for liquor to become cheaper also seemed clear. While giving information about the decisions of the Council, Finance Minister Nirmala Sitharaman has said that zero percent GST will be imposed on millets.
Who does not feel like eating hot bread made from coarse grains like jowar, millet or ragi in the mild winter sun? Now before winter, the government has given a big gift regarding these coarse grains. If all these flours are being sold non-branded or in the open, then there will be zero GST on it. However, the government has reduced the GST rate on branded flour of millet or other millets to 5 percent, which was earlier 18 percent.
After the 52nd meeting of the GST Council, Finance Minister Nirmala Sitharaman gave information about the decisions taken in the meetings. It was clarified that the GST rate on non-branded and loose flour of coarse grains will be zero. However, even if coarse grains are being blended into loose flour, it should still contain at least 70 percent millets, only then this flour will come under the purview of GST exemption. Even if loose millet flour is made 100 percent from millets, it will still be eligible for GST exemption.
The year 2023 is being celebrated as International Year of Millets across the world. Modi government is continuously promoting millets, that is why even in big international events like G20, dishes made from millets were served to the guests. In recent times, the use of millets has also increased among people who give priority to health. In such a situation, this relief from GST will benefit the consumers of millets as well as their farmers.
Drinking alcohol will also be cheaper
A decision in the GST Council meeting is also related to making liquor cheaper. In fact, the government has exempted distilled alcohol used for human consumption from GST. Whereas Extra Neutral Alcohol (ENA) used in the industry will continue to attract 18 percent GST as before.
At the same time, the GST rate on molasses used in making liquor has also been reduced. Earlier GST was levied at the rate of 28 percent, whereas now GST will be levied at the rate of 5 percent.
Sugarcane farmers will get payment soon, milk will be cheaper
Reduction in GST rate on molasses is expected to improve the cash position of the mills, due to which the dues of sugarcane farmers can be cleared faster. At the same time, it can also be helpful in bringing down the cost of animal feed, which is ultimately expected to bring down the prices of milk.
Transporting goods by railway can become expensive
The GST Council has taken another decision to impose tax on the supply of all goods and services through Railways. All these will be taxed as per the forward charge mechanism, due to which Railways will be able to avail the benefit of ITC and its cost will reduce.
No GST on water bill
The government has made expenditure on household water supply, health services, sanitation services, waste management and slum improvement tax free. Along with this, reforms have been announced in the GST Appellate Tribunal. Now the maximum age of its President will be 70 years instead of 67, while the members will be able to serve till the age of 67 years instead of 65. The remaining minimum age for both will be 50 years.
18% GST on corporate guarantee
Another big decision was taken in the GST Council regarding corporate guarantee. If a holding company gives a corporate guarantee to any of its other companies, then the parent company will have to pay GST at the rate of 18 percent on the entire guarantee amount.
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