The Goods and Services Tax (GST) Council has chosen to delegate the taxation of Extra Neutral Alcohol (ENA), which is used for the manufacture of portable alcohol, to the states. Furthermore, it has reduced the levy rates on millet flour and molasses. the flour is unpackaged and contains at least 70 per cent millet, it will be subject to a zero per cent tax rate. However, if it is packaged and labelled, it will incur a five per cent tax rate.
GST Council in its 52nd meeting also lowered the GST tax on molasses from 28 to 5 per cent. “It will benefit sugarcane farmers, lower cattle feed cost,”
Rate cut on millet products slashed to 5% if sold in pre-packaged form, nil GST if sold lose in powder form with 70% composition
— No tax rate on Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption
— GST rate on molasses slashed from 28% to 5% in relief to cane farmers