Written by- Aakansha
According to news agency ANI, the Goods and Services Tax (GST) Council resolved on Saturday to reduce the tax rate on millet flour culinary preparations from the current 18% GST to 5%. India has declared 2023 to be the “Year of Millets.” The exemption is significant right now because the government has been emphasising millet promotion.
The 52nd GST Council meeting will be presided over by Union Finance Minister Nirmala Sitharaman on Saturday at Sushma Swaraj Bhawan in New Delhi.
The GST Council’s fitment committee has before advocated for the exemption for millet powder. It had declined to offer any incentives for millet-based prepared food.
According to a report on CNBC TV-18, the GST Council is believed to have approved the proposal to charge 18% GST on corporate guarantees provided by holding companies or subsidiaries.
The GST Council is also anticipated to examine the application of the 28% tax on internet gambling, horse racing, and casinos.
Since around 15 states have not yet changed their separate State GST rules, the All India Gaming Federation (AIGF) recently wrote to Revenue Secretary Sanjay Malhotra requesting information on GST tax arrangements. When it comes to deposits received from players from such areas, how should online gaming companies registered in those states treat their GST obligations?
The GST Council is anticipated to debate a proposal to reduce the GST on molasses from 28% to 5% in order to give the alcohol industry clarity as one of its other significant decisions.
The council may also make it clear that Extra Neutral Alcohol (ENA), a highly pure form of ethyl alcohol used as a key raw material for producing alcoholic beverages for human consumption, is not going to be taxed.
The council will probably also go over and discuss the GST on various public contracts for government-related non-sale structures such as industrial buildings, bridges, and highways.
The Council is also anticipated to provide clarification about data centre taxation. The circular is likely to state that GST will be payable at a rate of 18% for data centres with contracts limited to the provision of physical space for rent.
The establishment of the GST Appellate Tribunals is another important item that the GST Council is anticipated to discuss. Although the government announced last month that 31 Appellate Tribunals would be established across the nation in 28 States and 8 Union Territories, procedural matters, such as the terms of reference for the chairman and member appointments, are still a work in progress.
By year’s end, the Center and the States want to have the tribunals up and running, ready to handle the numerous GST cases.