New Delhi | In the GST Council meeting held on Saturday, it was decided not to increase the tax on any item. Meanwhile, the council recommended reducing GST on biofuels from 18 percent to 5 percent. The GST Council has made recommendations related to changes in GST tax rates, measures for the facilitation of business and measures to streamline compliance in GST.
As per the recommendations of the Council, GST on the husk of pulses was reduced from five percent to nil.
Besides this, the council also recommended the reduction of GST on ethyl alcohol or biofuel supplied to refineries for blending with motor spirit (petrol) from the existing 18 percent to five percent.
Officials said GST on online gaming and casinos was not discussed as the GoM report on the issue had been submitted its report a few days ago. An official said that the report of the GoM was not even circulated to the members of the GST Council.
The GST Council decided to clarify that goods falling in the lower rate category of 5 percent under Schedule A of Notification No. 1/2017-CTR imported for petroleum operations would attract a lower rate of 5 percent and 12 percent. This is applicable only if the normal rate exceeds 12 percent.
It also clarified that no GST is payable where residential accommodation is let out to a registered person if it is let out for use as his own residence in his individual capacity and his own on account of and not on account of his business.
The GST Council further clarified that the incentives provided by the Central Government to banks under the scheme to promote RuPay Debit cards and low-value BHIM-UPI transactions are in the nature of subsidy and thus not taxable.
The 48th meeting of the GST Council was held under the chairmanship of Union Minister for Finance and Corporate Affairs Nirmala Sitharaman through virtual mode in Delhi on Saturday.
The meeting was also attended by Union Minister of State for Finance, Pankaj Chowdhary, besides Finance Ministers of States and Union Territories (with legislature) and senior officials of Ministry of Finance and States/UTs.
