Prices of goods ranging from online gaming to flour and liquor will change, see the list of what is cheap and what is expensive in the GST Council meeting.

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GST Council Meeting: Finance Minister Nirmala Sitharaman (Nirmala SitharamanIn the 52nd meeting of the GST Council held under the chairmanship of , major decisions have been taken regarding GST ranging from coarse grains to online gaming and liquor. The GST Council has handed over the power to impose tax on liquor to the states. In such a situation, additional neutral alcohol for human consumption (ENA) will be exempted from GST, while 18 percent GST will be imposed on ENA used for industrial use. Along with this, another big decision taken in the meeting is related to the corporate world. It was made clear in the meeting that 18 percent GST will be levied on the guarantees given by the corporate world to its subsidiaries. However, no tax will be charged on the personal guarantee given by the director to the company. The council, headed by Union Finance Minister Nirmala Sitharaman and comprising counterparts from states, reduced the GST rate on molasses from 28 percent to five percent. Sugarcane farmers are expected to benefit from this. After the meeting, it is believed that customers can get a big relief in the prices of liquor. However, now the final decision on this will be with the states.

Sugarcane farmers benefit from reduction in GST on molasses: Minister

While giving information to the reporters after the 52nd meeting of the GST Council, Sitharaman said that the reduction in GST on molasses will benefit the sugarcane farmers and their dues can be cleared faster. He said that the council and all of us feel that this will also reduce the cost of making animal feed, which will be a big thing. 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 considered nil and hence 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. Therefore, 1% of the total amount will attract 18% GST. The council decided to impose a five percent tax on labeled coarse grain flour. GST will be applicable on packing and labeling flour and selling it. Zero percent GST will be applicable on flour containing at least 70 percent coarse grains if sold loose, but five percent GST will be applicable if sold packed and labeled.

Maximum age of GST Chairman also increased

The decision on the maximum age of the GST Council was also taken in the GST Council meeting held under the chairmanship of Finance Minister Nirmala Sitharaman. In the meeting, while deciding on fixing the maximum age limit of the Chairman and members of the GST Appellate Tribunal (GSTAT), the maximum age of the GSTAT Chairman was fixed at 70 years and the maximum age of the members was 67 years. Let us tell you that earlier the maximum age of the GST Chairman was 67 years and the maximum age of the GST Council members was 65 years. However, meanwhile, states like Delhi and Goa have raised the issue of reducing retrospective tax on online gaming companies and casinos.

28 percent GST applicable on online gaming, casino from the beginning: Revenue Secretary

Revenue Secretary Sanjay Malhotra on Saturday reiterated that 28 percent GST was applicable on online gaming and casinos from the beginning. It is noteworthy that states like Delhi and Goa have raised the issue of demanding retrospective tax on online gaming companies and casinos. Malhotra told reporters after the GST Council meeting that some members raised the issue of retrospective taxation. He was told that this was not implemented retrospectively, but was already in the law. These liabilities already existed because these online games were played with bets. Due to betting or gambling, 28 percent GST was already applicable on them. In the 52nd GST Council meeting, Delhi and Goa raised the issue of tax demand on e-gaming companies and casinos.

Gaming will harm Indian startups: Atishi

Delhi Finance Minister Atishi said that online gaming companies are being sent tax notices at a higher rate of 28 percent for the last six years, while the 28 percent GST was to be implemented on October 1. Atishi said that in an industry whose revenue is Rs 23,000 crore, you are giving a tax notice of Rs 1.5 lakh crore. This is to destroy the industry. This reflects the unsafe investment environment in the Indian startup ecosystem. Sanjay Malhotra further said that some states like Delhi and Goa raised the issue of online gaming companies receiving GST notices for alleged tax evasion. Chhattisgarh Deputy Chief Minister and GST Council member T S Singh Deo said that these companies have been booked in the past. The fee to be levied from the date (tax demand notice) was discussed. Since DGGI is an independent institution, there cannot be any interference in it. The (GST Council) chairperson said that if needed, she would provide clarification to the DGGI.

GST Council’s decision on ENA to bring stability in industry: CIABC

The apex body of liquor companies CIABC on Saturday said the GST Council’s decision to exempt ENA (extra neutral alcohol) used for human consumption from tax will provide relief to the industry. The Confederation of Indian Alcoholic Beverage Companies (CIABC) said the industry was urging the council to resolve the matter. CIABC Director General Vinod Giri said that the decision of the GST Council has brought great relief to the industry. This will bring stability. GST will continue to be levied on ENA for industrial use. He said the industry would like all alcohol, including finished products, to be kept under the purview of GST to bring uniformity in taxation across states. He said that till now, in the absence of clarity from the GST Council, the courts have taken conflicting stances on the matter, which has further increased the uncertainties. He also welcomed the Council’s decision to reduce GST on molasses from 28 percent to five percent.

,with language input,

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