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GST Council: In the 52nd meeting of the GST Council, a major decision has been taken regarding liquor. Under this, the GST Council has delegated the right to levy tax on liquor to the states for consumers. According to the council’s decision, raw material extra neutral alcohol (ENA) supplied to consumers will now be exempted from GST, while ENA used for industrial use will be levied 18 per cent GST. It is believed that this decision of the GST Council will also affect the prices of liquor. Consumers can get relief in the price of liquor. However, it completely depends on the states and liquor companies.
Verdict on the lot: Council Decided to impose five percent tax on labeled coarse grain flour. Packing and labeling of flour for sale GST will apply. Flour containing at least 70 per cent coarse grains will attract zero per cent GST if sold in bulk, but five per cent GST if sold packaged and labelled.
Benefit of Tax Cut on Dal: Finance Minister Nirmala Sitharaman said that on dal GST Sugarcane farmers will benefit from the reduction and their dues will be paid faster. “We all feel that this will also reduce the cost of making animal feed, which will be a big deal,” he said.
Relief to Directors: The GST Council clarified that 18 percent GST will be levied on guarantees given by corporates to their subsidiaries. However, the personal guarantee given by the director to the company will not attract any tax. Revenue Secretary Sanjay Malhotra said the council has decided that when a director gives a corporate guarantee to a company, the value of the service will be treated as nil and therefore no GST will be applicable on it. He further said that when a company gives a corporate guarantee to its subsidiary, it will be considered that the value of the service is a percentage of the corporate guarantee. So 1% of the total amount will attract 18% GST.
Apart from this, it was also decided to fix the maximum age limit for the Chairman and members of the GST Appellate Tribunal (GSTAT). Under this, the maximum age of the GSTAT Chairman will be 70 years and the maximum age of the members will be 67 years. Earlier these limits were 67 years and 65 years respectively.
A 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 retrospective tax demand on online gaming companies and casinos. Malhotra said- Some members had raised the issue of tax from previous date. He was told that this was not implemented retrospectively, but was already in law. These liabilities already existed because these online games were played with betting… They were already attracting 28 percent GST on account of betting or gambling.