SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

GoM moots lowering of GST on ethanol to 12%

12 Jul 2018 Evaluate

The Group of Ministers (GoM), headed by Assam Finance Minister Himanta Biswa Sarma, has mooted Goods and Services Tax (GST) reduction on ethanol from 18 percent to 12 percent but did not favour imposing cess on sugar as arrears to cane farmers are already declining. If the Council decides on levying cess on sugar a new legislation has to be brought in specifying the levy of cess and the proceeds of which will be going to a special fund to compensate sugarcane farmers. The other members of the GoM on sugar cess and ethanol include Uttar Pradesh Finance Minister Rajesh Agrawal, Maharashtra Finance Minister Sudhir Mungatiwar, Kerala Finance Minister Thomas Isaac and Tamil Nadu Fisheries Minister D Jayakumar.

The GoM recommendations would be placed before the GST Council in the next meeting on July 21. It would recommend to the GST Council a reduction in the rate on ethanol from 18 percent. The panel is likely to recommend lowering GST rate on ethanol to 12 percent GST, though food ministry had been batting for 5 percent rate.

The GST Council in its last meeting in May had constituted the GoM to look into the food ministry's proposal of imposition of cess of up to Rs 3 per kg on supply of sugar over and above 5 percent GST rate. The proceeds from the levy, estimated at Rs 6,700 crore, would flow into a separate fund to be utilised for interventions in the sugar sector and for cane farmers. Besides, the Union Cabinet had last month cleared a bailout package of over Rs 8,000 crore for the sugar industry to help the cash-starved mills to clear dues to farmers. It had also fixed an MSP of Rs 29 a kg.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×