GST Council additionally determined to levy 5 per cent tax on millet-based flour when offered in pre-packaged
New Delhi:
The GST Council on Saturday clarified that ensures supplied by corporates to their subsidiaries will entice an 18 per cent GST, whereas no tax will probably be levied if a private assure is given by a director to the corporate.
The council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, additionally minimize the GST fee on molasses to five per cent from 28 per cent.
It additionally ceded the proper to tax Additional Impartial Alcohol (uncooked product for making alcohol for human consumption) to the states.
Accordingly, ENA used for human consumption will probably be exempt from Items and Providers Tax (GST), whereas ENA for industrial use will probably be taxed at 18 per cent.
Briefing reporters after the 52nd GST council assembly, Sitharaman stated the discount in GST on molasses will profit sugarcane farmers and allow their dues to be cleared quicker as a result of more cash will probably be left within the palms of the mills.
“The council and all of us really feel that it’ll additionally result in a discount in the price of manufacturing cattle feed, which will probably be a serious improvement,” she stated.
Income Secretary Sanjay Malhotra stated the council has determined that when the company assure is given by a director to an organization, then the worth of service will probably be deemed to be zero and therefore, no GST will probably be relevant.
“When a company assure is given by an organization to its subsidiary firm, then it is going to be deemed that the worth is 1 per cent of the company assure. So, it’ll entice GST at 18 per cent on 1 per cent of the whole quantity assured by the mother or father firm,” Malhotra stated.
The GST Council additionally determined to levy a decrease 5 per cent tax on millet-based flour when offered in pre-packaged and labelled type.
Flour, containing no less than 70 per cent millets, will entice zero per cent GST if offered unfastened and 5 per cent if offered pre-packaged and labelled.
The council additionally determined to cap the utmost age of GST Appellate Tribunal (GSTAT) President and members.
The GSTAT President can have a most age cap of 70 years, whereas the restrict for members will probably be 67 years.
It is a change from the sooner age restrict of 67 and 65 years, respectively, for the GSTAT President and members.
(Aside from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)
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