GST Council meeting: Here's what to expect from FM Sitharaman's address at 3 pm today

Union Finance Minister Nirmala Sithraman is set to address the media at 3 pm on Saturday after the conclusion of the 52nd GST Council meeting in New Delhi. The FM is chairing the meeting, which is also attended by Union Minister of State for Finance Pankaj Chaudhary, Finance Ministers of States and Union Territories and Senior officials from Centre and States.

The GST Council may have agreed on the proposal to levy 18% GST on corporate guarantees extended by holding companies or subsidiaries, say CNBC-TV18 sources. It likely agreed to levy 18% GST on personal guarantees given by promoters or directors against loans given by banks.

The Council likely has approved the proposal of the fitment committee to reduce rates where millet flour is more than 70%. It will be now taxed at 5%.

The Council is likely to have approved the reduction in GST rate on Molasses to 5%.

The Council likely will issue a clarification circular suggesting data center services to be treated as export and not subject to GST in case of overseas customers. The circular is likely to say data centers with contracts only for providing physical space on rent then GST to be applicable at 18%.

The Council is likely to have approved the terms and qualifying age limits of GST appellate tribunals. It is likely to have agreed to aligned terms and age limits with the Tribunal Reforms Act 2021. Advocates with 10 years of experience in indirect tax law practice are now eligible to apply for the Tribunal member post (judicial). The age limit for the President is now 70 years from the earlier recommended at 67 years. While the age limit for members has been increased to 67 years.

The GST Council nods to exempt the extra neutral alcohol (ENA) (both grain-based and molasses-based ENA) from GST when supplied for the manufacture of alcoholic liquors. The council also agrees that states will also exempt ENA (both grain-based and molasses-based) from VAT when supplied for industrial purposes.

GST Council clears a proposal of having an Amnesty for appeal filing till January 2024, sources tell CNBC-TV18.

In what could give some hope to the metal industry that has been seeking a change in the treatment of GST on steel scrap, the GST Council is likely to deliberate on the matter in greater detail at the upcoming meeting on October 7. Sources have told CNBC-TV18 that the GST Council is likely to discuss the metal industry's request to levy GST on steel scrap on a reverse charge mechanism (RCM) basis. Currently, 18% GST is levied on steel scrap.

There will be no reduction in the goods and services tax (GST) rate on electric vehicles (EV) batteries as the GST Council’s fitment committee has rejected the industry’s proposal, sources told CNBC-TV18. The EV industry had sought a reduction of GST on batteries from 18% to 5%, however, the fitment committee has recommended maintaining a status quo on the rate.