The 52nd GST Council meeting was held on October 7, 2023 in New Delhi. The meeting was chaired by Finance Minister Nirmala Sitharaman and attended by State Finance Ministers and senior officials from the Union Government and States.
Here are the key takeaways from the meeting:
- GST on millet flour reduced to 5%: The GST rate on flour containing 70% or more millet was reduced from 18% to 5%. This is expected to make millets more affordable and boost their consumption.
- GST on molasses cut to 5%: The GST rate on molasses was reduced from 18% to 5%. This is a relief for the ethanol industry, which uses molasses as a raw material.
- GST on ENA for human consumption exempted: ENA (ethylenediamine-N-acetate) is a chemical compound used in various industries, including water treatment and cosmetics. The GST on ENA for human consumption was exempted.
- GST on goods sold in fairs and exhibitions extended: The concessional GST rate of 5% on goods sold in fairs and exhibitions was extended by one year, till September 30, 2024.
- GST on bank and corporate guarantees clarified: The GST Council clarified that bank and corporate guarantees are not taxable under GST.
The GST Council also discussed the roadmap for the compensation cess beyond June 2026. The cess is currently levied on certain goods to compensate states for the revenue loss they incurred due to the transition to GST. The Council decided to form a group of ministers to examine the issue and submit a report within two months.
Overall, the 52nd GST Council meeting took several decisions that are expected to benefit businesses and consumers. The reduction in GST rates on millet flour and molasses is a welcome move, and the extension of the concessional GST rate on goods sold in fairs and exhibitions is a relief for the trade sector. The clarification on GST on bank and corporate guarantees will also provide certainty to businesses.