The GST Council, in its 52nd meeting, cleared a few measures to boost foreign trade and make the tax regime simpler and easier to comply with.
The council reduced the GST rate on molasses from 28% to 5%. Molasses is a key ingredient in the production of ethanol, which is used in blending with petrol. The reduction in GST rate is expected to make ethanol production more competitive and help in reducing India’s dependence on imported oil.
The council also introduced an amnesty scheme for filing appeals. The scheme will allow taxpayers to file appeals against GST orders without having to pay any penalty or interest. The scheme is expected to reduce the backlog of cases pending before the GST Appellate Tribunal and other appellate authorities.
In addition, the council made changes to the GST rates for food preparations made from millet flour and imitation zari threads. The GST rate on food preparations made from millet flour was reduced from 5% to nil. Millet is a nutritious cereal crop that is grown in many parts of India. The reduction in GST rate is expected to make millet-based food products more affordable and accessible to consumers.
The GST rate on imitation zari threads was increased from 5% to 12%. Zari is a type of metallic thread that is used in embroidery and other decorative work. Imitation zari threads are made from synthetic materials and are cheaper than traditional zari threads. The increase in GST rate is expected to discourage the use of imitation zari threads and promote the use of traditional zari threads.
The measures taken by the GST Council are expected to boost foreign trade, make the tax regime simpler and easier to comply with, and promote the use of traditional products.