From liquor to flour, these things became cheaper and more expensive in the GST Council meeting.

In the GST Council meeting, major decisions have been taken regarding tax on everything from liquor to flour. While on one hand there is good news for liquor lovers, on the other hand, this time the GST meeting has dealt a blow to online gaming companies. In such a situation, let us tell you what things have become cheaper and what have become expensive in the GST meeting tomorrow.

In the GST Council meeting, major decisions have been taken regarding tax on everything from liquor to flour. While on one hand there is good news for liquor lovers, on the other hand there is a setback regarding online gaming. Let us tell you, the council has taken a big decision regarding liquor in the meeting. The GST Council has handed over the power of consumer tax on liquor to the states. This means that now the tax on liquor will be decided by the state only. Apart from this, the raw-material Extra Neutral Alcohol (ENA) of liquor customers has been given relief from GST. Whereas 18% GST has been imposed on ENA for industrial production. In such a situation, let us tell you what things have become cheaper and what have become expensive in the GST meeting tomorrow.

These things will be cheap and expensive

Liquor- According to experts, after this decision of GST Council, the prices of liquor will be affected and it may become cheaper. However, the GST Council has left this decision entirely to the states, so the liquor companies and the states will decide the tax.

Flour: The council has decided to impose 5 percent tax on labeled coarse grain flour. GST will be applicable on packing and labeling flour and selling it. Such flour, which contains at least 70 percent coarse grains, will attract 0 percent tax if sold loose. At the same time, if it is packed and sold, then five percent GST will be levied on it.

Benefit of tax reduction on molasses : Finance Minister Nirmala Sitharaman has reduced GST on molasses. Sugarcane farmers will benefit from GST reduction on molasses and their dues will be cleared faster.

Relief to directors: GST Council clarified that 18 percent GST will be levied on the guarantees given by the corporate sector to its subsidiaries. However, no tax will be levied on the personal guarantee given by the director to the company. Revenue Secretary Sanjay Malhotra said that the council has decided that when a director gives corporate guarantee to a company, it will be treated as service tax and hence no GST will be applicable on it.

Apart from this, it was also decided to fix the maximum age limit of the Chairman and members of GST Appellate Tribunal GSTAT. Under this, the maximum age of GSTAT Chairman will be 70 years and the maximum age of members will be 67 years. Earlier it was 67 years and 65 years.

Shock to online gaming companies

Speaking to the media after the GST Council meeting, Revenue Secretary Sanjay Malhotra said that 28 percent GST was applicable on online gaming and casinos from the beginning. Let us tell you that states like Delhi and Goa have raised the issue of demanding retrospective tax on online gaming companies and casinos. These liabilities already existed, because these online games were played by placing bets… 28 percent GST was already applicable on them due to betting or gambling.