The 52nd Goods and Services Tax Council meeting was held today at Sushma Swaraj Bhawan in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman. The meeting was attended by Union Minister of State for Finance, besides Finance Ministers of States and UTs (with Legislature) and Senior officials from Union Government and States.
The council discussed several key issues, including the exemption of GST on powdered millets, extending the concessional rate of 18% GST on vehicles purchased by visually impaired persons, and taxability on corporate guarantee and bank guarantee given by the directors and promoters of the companies. The council also reviewed the implementation of the 28% levy on online gaming, horse racing, and casinos.
The council decided to reduce GST on molasses from 28% to 5%. It also agreed to levy an 18% GST on personal guarantees given by promoters/directors against loans given by banks. The council is expected to release a circular providing clarification that data center services are to be considered as exports, exempt from GST, particularly in the case of overseas customers.
FM Sitharaman announced that no tax rate would be imposed on millet flour containing 70% composition. She also stated that branded products would be levied with a 5% tax rate. The FM also approved the formation of GST Tribunal. Apart from this, IGST will not be imposed on imported cancer drugs.
The council’s decisions will have a significant impact on businesses and consumers alike. The reduction in GST on molasses will benefit sugar mills and distilleries. The exemption of GST on powdered millets will provide relief to farmers and consumers. The reduction in tax rates for branded products will make them more affordable for consumers. The decision to levy an 18% GST on personal guarantees given by promoters/directors against loans given by banks will have an impact on businesses’ borrowing costs.
Overall, the decisions taken at the 52nd GST Council meeting are expected to have a positive impact on businesses and consumers alike.