52nd GST Council Meeting has concluded today, 07/10/2023. Here are the ‘key’ takeaways from the press conference:
1. Related to GSTAT:
(a) President and members shall have maximum tenure up to age of 70 years and 67 years respectively. Minimum age 50 years for both.
(b) Advocates which can be considered to become judicial members – those having up to 10 years of experience
2. Celebrating the year of millets!
Food preparation with 70% ‘millets’ (HSN 1901) by weight – exempt from GST if sold in other than ‘pre-packaged and labelled form’. If sold in pre-packaged and labelled form rate of GST would be 5%.
3. GST on extra-neutral alcohol: The states are now free to levy tax on extra-neutral alcohol. GST Council though has the right to tax it, it has been ceded to the states.
4. GST on molasses has been reduced from 28% to 5%
5. In order to promote tourism, conditional exemption from IGST has been given to foreign owned vessels for coastal runs.
6. Corporate Guarantee:
(a) Given by Director to the company – Value of supply shall be consideration or Nil, whichever is higher.
(b) Given by Holding co. to subsidiary co. – 18% GST on the value of supply which shall be 1% of the guaranteed amount or actual consideration whichever is higher.
Fine print of the Press Release awaited.
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