Recent GST Amendments and Updates
Discover the latest GST amendments and updates announced by the GST Council and CBIC, including changes in GST rates, tariff codes, and the GST registration process. Stay informed and compliant with the evolving GST framework.
The Goods and Services Tax (GST) system in India has undergone several amendments and updates in recent times to enhance compliance, simplify processes, and address evolving economic conditions. These changes, announced by the GST Council and the Central Board of Indirect Taxes and Customs (CBIC), aim to make the GST framework more efficient and user-friendly for businesses and taxpayers.
One of the key amendments introduced in October 2023 was the reduction in the GST rate on molasses from 28% to 5%. This step is expected to increase liquidity for mills and enable faster clearance of cane dues to sugarcane farmers. It will also lead to a reduction in the cost of manufacturing cattle feed, as molasses is an ingredient in its production.
Additionally, a separate tariff code has been created at the 8-digit level in the Customs Tariff Act to cover rectified spirit for industrial use. The GST rate notification has also been amended to create a new entry for Extra Neutral Alcohol (ENA) for industrial use, attracting an 18% GST rate.
The GST Council has also recommended keeping ENA used for the manufacture of alcoholic liquor for human consumption outside the ambit of GST. The Law Committee will examine suitable amendments in the law to exclude ENA for use in the manufacture of alcoholic liquors for human consumption from the GST system.
Furthermore, the GST registration amendment process has been streamlined, with core amendments (such as changes to the legal business name, principal place of business, and additional places of business) requiring approval from the tax authorities, while non-core amendments (like updates to contact information) are auto-approved upon submission.
Businesses and taxpayers are advised to stay informed about these recent GST amendments and updates by regularly checking the official GST portal (www.gst.gov.in) and other government websites. Keeping up-to-date with these changes is crucial for ensuring compliance and taking advantage of any beneficial adjustments to the GST system.
