The Council is also likely to discuss exempting distilled alcohol used to manufacture liquor from the indirect tax. High distilled or extra neutral alcohol contains 95% alcohol by volume and is used for producing liquor and for industrial purposes.
New Delhi: The 52nd meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, is going to be held on October 7, 2023, (Saturday) at Vigyan Bhawan, New Delhi. The Council is likely to tweak GST rates on various products, including taxation of online gaming in SGST laws and vehicles bought by visually impaired persons. According to Reuters report quoting a source, The Council is also likely to discuss exempting distilled alcohol used to manufacture liquor from the indirect tax. High distilled or extra neutral alcohol contains 95% alcohol by volume and is used for producing liquor and for industrial purposes. The council will also consider a proposal to lower GST on molasses to 5% from 28%, according to the report.
Presently, molasses supplied for industrial purposes carries a GST burden of 28 percent, while the taxation of ENA for human consumption is a matter for individual states, falling outside the purview of the GST.
Likely Agenda For 52nd GST Council Meeting:
- The GST Council is likely to review the progress made by the states in incorporating changes with regard to the taxation of online gaming in SGST laws as approved by the council in its 51st meeting.
- Concessional tax rate of 18% on vehicles purchased by visually impaired persons,
- According to a report in The Economic Times, the council is likely to clarify the levy of tax on bank and corporate guarantees provided by directors and promoters to a company. The report further said that the meeting will also consider exemption on millets sold in powdered form.
- Proposal to bring all services provided by Indian railways under forward charge mechanism shifting from RCM
- Clarify levy of tax on bank and corporate guarantees provided by directors and promoters to a company and many more.
- GST council is likely to consider reducing GST on molasses to 5% from 28%, CNBCTV18 reported. It further said that the council is likely to give clarity to centre & industry on taxation of Extra Neutral Alcohol (ENA). As per the CNBCTV18 report, the council is likely to free ENA from the GST.
The 52nd GST Council Meeting is expected to review the developments made by states in implementing the legislative amendments in the SGST legislations. A handful of states are yet to notify the amendments in their respective state laws, which could create operational hurdles in implementation of the amendments.
The Council meeting shall address the concerns raised by the States. The Council needs to address the concerns of the stakeholders for the intervening period.
Previous GST Council
The 51st GST Council, held in August, decided to keep the 28 per cent tax on online gaming, casino and horse racing, and discussed the modalities to implement it. The 51st GST Council meeting was held within less than a month of the previous GST Council meeting on July 11. It discussed the modalities for determining supply value in online gaming and casinos for levying a 28 per cent tax.