Petrochemical

GST Council decides to reduce tax rates on Ethyl alcohol from 18% to 5%

Date: 17th December, 2022

Source: Air News

GST Council has decided to reduce the tax rates on Ethyl alcohol from 18 per cent to five per cent, supplied to refineries for blending with motor spirit (petrol). This will further promote efforts on blending and reduce dependence on imported crude and save foreign exchanges. The decisions have been taken by the 48th GST Council meeting under the chairmanship of Finance Minister Nirmala Sitharaman in New Delhi. The GST council also decided to reduce the tax rate on husk of pulses including chilka from 5 per cent to nil.

The Council has also agreed to decriminalise certain offences and increase the minimum threshold limit for launching prosecution of tax defined under the GST law. The limit has been doubled from one crore to two crore rupees other than fake invoices. The offences which were recommended to be decriminalised include, obstruction of preventing any officer in discharge of his duties, deliberate tempering of material evidence and failure to supply the information.

Briefing media after the GST Council meeting, Ms. Sitharaman said, the GST Council could not discuss taxation on tobacco and gutkha. She said, setting up of GST tribunal was also not discussed in the meeting.