No tax increase on any item; GST on biofuel down to 5% from 18%
No tax increase on any item was decided at the GST Council meeting on Saturday. Meanwhile, the Council recommended reducing GST on biofuel from 18 per cent to 5 per cent.
IANS
Dec 17, 2022 06:53
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New Delhi, Dec 17 (IANS) No tax increase on any item was decided at the GST Council meeting on Saturday. Meanwhile, the Council recommended reducing GST on biofuel from 18 per cent to 5 per cent.
The GST Council has made the recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
As per the Council recommendations, GST on husk of pulses reduced to nil from five per cent.
Besides, the Council also recommended reduction of GST on Ethyl alcohol or biofuel supplied to refineries for blending with motor spirit (petrol) to five per cent from current 18 per cent.
Officials said that GST on online gaming and casinos was not discussed as the report of GoM on the issue submitted its report only a couple of days back. The report of the GoM was not even circulated to GST Council members, said an official.
The GST council decided to clarify that goods falling in lower rate category of 5 per cent under schedule I of notification No. 1/2017-CTR imported for petroleum operations will attract lower rate of 5 per cent and the rate of 12 per cent shall be applicable only if the general rate is more than 12 per cent.
It also clarified that no GST is payable where the residential dwelling is rented to a registered person if it is rented in his/her personal capacity for use as his/her own residence and on his own account and not on account of his business.
The GST council further clarified that incentives paid to banks by the Central government under the scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and thus not taxable.
The 48th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman via virtual mode in Delhi on Saturday.
The meeting was also attended by Union Minister of State for Finance Pankaj Choudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance and states/ UTs.
