Highlights from the GST Council Meeting: No GST on flour containing 70% millet; tax on molasses cut to 5%

Introduction

The Goods and Services Tax (GST) Council Meeting was held recently to discuss and make decisions on various tax-related matters. The meeting was chaired by the Finance Minister, Nirmala Sitharaman, and attended by representatives from all the states and union territories.

Key Highlights

During the meeting, several important decisions were made that will have a significant impact on various sectors. Here are the key highlights:

No GST on flour containing 70% millet

One of the major decisions taken during the meeting was to exempt flour containing 70% millet from the GST. This move aims to promote the consumption of millets, which are highly nutritious and have several health benefits. By exempting millet flour from GST, the government hopes to encourage the production and consumption of millets, which will benefit both farmers and consumers.

Tax on molasses reduced to 5%

Another important decision taken during the meeting was to reduce the tax on molasses from 18% to 5%. Molasses is a by-product of the sugar industry and is used in the production of various products, including alcohol. The reduction in tax on molasses will help boost the sugar industry and promote the production of alcohol.

Other decisions

Several other decisions were also made during the GST Council Meeting. These include:

• Extension of the deadline for filing annual GST returns for the financial year 2020-21 by two months.
• Introduction of a new functionality on the GST portal to allow taxpayers to make corrections in their GSTR-3B returns.
• Introduction of a new return filing system called GST RET-1, which will be made available to taxpayers from January 1, 2022.

Conclusion

The GST Council Meeting was a significant event that saw the announcement of several important decisions. The exemption of GST on flour containing 70% millet will promote the consumption of millets and benefit both farmers and consumers. The reduction in tax on molasses will boost the sugar industry and encourage the production of alcohol. The other decisions taken during the meeting will simplify the GST filing process and provide relief to taxpayers. Overall, the GST Council Meeting was a step towards further improving the GST system and promoting economic growth.