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SNR – GST Update/2023-24/06

SNR – GST Update                                                                                                                                                                                 2023-24/06

The 52nd GST Council meeting under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman was held on 7th October 2023 at New Delhi. Council has made following recommendations pertaining to rate
changes, trade facilitation measures etc.:

A. Changes in GST rates of Goods and Services

a) Food preparation of millet flour in powder form, containing at least 70% millets by weight”, falling under HS 1901

  • 0% :- If sold in other than pre-packaged and labelled form
  • 5% :- If sold in pre-packaged and labelled form

b) Clarification on Imitation zari thread or yarn made out of metallised polyester film /plastic film, falling under HS 5605:

  • Covered by the entry for imitation zari thread or yarn attracting 5% GST rate. However, no refund will be allowed on polyester film (metallised) /plastic film on account of inversion of tax

c) Foreign-going vessels are liable to pay 5% IGST on the value of the vessel if it converts to coastal Run

  • Conditional IGST exemption to foreign flag foreign going vessel when it converts to coastal run subject to its reconversion to foreign going vessel in six months

d) Entries at Sl. No. 3 and 3A of notification No. 12/2017-CTR dated 28.06.2017 exempts pure and composite services provided to Central/State/UT governments and local authorities in relation to any function entrusted to Panchayat/ Municipality under Article 243G and 243W of the Constitution of India.

  • To exempt services of water supply, public health, sanitation conservancy, solid waste management and slum improvement and upgradation supplied to Governmental Authorities

e) Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption would be kept outside GST.
f) To reduce GST on molasses from 28% to 5%.
g) To cover rectified spirit for industrial use through a new entry attracting 18% GST.

B. Other GST related Changes/ clarifications

  • Clarification shall be issued that job work services for processing of barley into malt attracts GST @ 5% as applicable to “job work in relation to food and food products” and not 18%.
  • Bus operators organised as companies to be excluded from the purview of section 9(5).
  • To clarify that District Mineral Foundations Trusts (DMFT) set up by the State Governments across the country in mineral mining areas are Governmental Authorities and thus eligible for the same exemptions from GST as available to
    any other Governmental Authority.
  • Supply of all goods and services by Indian Railways shall be taxed under Forward Charge Mechanism

C. Trade Facilitation Measures

Amnesty Scheme for filing of appeals : Appeals against demand orders issued on or before 31st March 2023 where appeal could not be filed within the allowable time period, can be filed upto 31st January 2024, subject to the condition of payment of an amount of pre-deposit of 12.5% of the tax under dispute, out of which at least 20% (i.e. 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger.


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