Raw alcohol, millet flour exempt from tax: GST
Council
NEW DELHI: The GST Council on Saturday decided to not
levy tax on millet flour when sold in loose, but it will
attract 5% tax when sold in prepackaged and labelled
form, Union finance minister Nirmala Sitharaman said.
Extra Neutral Alcohol
(also known as raw alcohol), used for making liquor will
be kept out of the GST ambit, the council said. GST’s
law committee will examine suitable amendments in the
law to exclude it from the GST ambit.
However, ENA for
industrial use will attract 18% GST.
GST on molasses has been
cut from 28% to 5%. It will increase liquidity with
mills and enable faster clearance of cane dues to
sugarcane farmers. “The liquor industry had a lot to
cheer as the Council decided to not levy GST on ENA
supplied to alcohol manufacturers. Also, it was
clarified that job work for conversion of barley to malt
would be liable to GST at 5% and not 18%.
The decision to reduce GST
to 5% on molasses would help the sugar industry and
sugarcane farmers. Similarly, reduction of GST on
millet-based flour should bring relief for industry and
health-conscious people,” said Pratik Jain, Partner,
PWC.
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