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GST Council Delegates ENA Taxation to States and Reduces Rates on Millet Flour

The Goods and Services Tax (GST) Council has made significant decisions in its 52nd meeting. One key decision is the delegation of the taxation of Extra Neutral Alcohol (ENA), used in the production of potable alcohol, to the states. Union Finance Minister Nirmala Sitharaman announced this decision and explained that despite the GST Council’s authority to impose charges on ENA, it has chosen to relinquish the right to tax distilled alcohol used for human consumption to the states. GST will still apply to ENA intended for industrial use.

Reduction in Millet Flour Levy Rates

In addition to the ENA decision, the GST Council has also lowered the levy rates on millet flour. Sitharaman clarified that if millet flour is unpackaged and contains a minimum of 70 percent millet, it will now be subject to a zero percent tax rate. However, if the millet flour is packaged and labeled, it will incur a five percent tax rate.

Lower GST on Molasses

Furthermore, the GST Council has reduced the GST tax rate on molasses from 28 percent to 5 percent. This change is expected to benefit sugarcane farmers and reduce the cost of cattle feed.

Age Limit for Council Members Extended

Sitharaman also highlighted a change in the age limit for council members. The tenure for the president and members of the council can now extend up to a maximum age of 70 years, an increase from the previous limit of 67 years for the president and 65 years for members.

The 52nd meeting of the GST Council, chaired by Nirmala Sitharaman, took place at Sushma Swaraj Bhawan in New Delhi and was attended by the union finance minister, union minister of state for finance, chief ministers of Goa and Meghalaya, as well as finance ministers of states and union territories (with legislature).


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