GST Council Delegates ENA Taxation to States, Reduces Millet Flour Rates

In the latest development from the GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman in New Delhi, significant decisions have been made regarding taxation. Firstly, the GST Council has chosen to empower states with the taxation authority over Extra Neutral Alcohol (ENA), a critical component in the production of potable alcohol. However, it’s important to note that ENA intended for industrial use will continue to attract GST.

In another notable move, the Council has reduced tax rates on millet flour, offering a boost to this nutritious grain. Unpackaged millet flour, comprising at least 70% millet content, will now enjoy a zero percent tax rate. Conversely, packaged and labeled millet flour will be subject to a five percent tax rate.

Furthermore, the GST Council has taken steps to alleviate the burden on sugarcane farmers by reducing the GST tax on molasses from 28% to 5%. This move is expected to lower cattle feed costs and benefit the agriculture sector.

In addition to these tax adjustments, the Council has made amendments related to the GST Appellate Tribunal. The president and members of the tribunal will now have a tenure extending up to a maximum age of 70 years, an increase from the previous limits of 67 and 65 years, respectively.

These decisions, made during the 52nd GST Council meeting, aim to streamline taxation, promote agriculture, and empower states in their taxation of ENA, all under the leadership of Union Finance Minister Nirmala Sitharaman.

Re-reported from the article originally published in The Hindustan Times