The 48th Goods and Services Tax (GST) Council meeting chaired by the Finance Minister Nirmala Seetharaman held on 17th December 2022 decided to include supply of Mentha Arvensis under Reverse Charge Mechanism (RCM) as has been done for Mentha Oil.
The Central Goods and Services Tax Act, 2017, Sections 9(3) and 9(4), give the government the authority to impose GST under RCM.
According to the recommendations of the GST council meeting, Mentha Arvensis, popularly known as Corn mint or wild mint, must be included in the Reverse Charge Mechanism. Mentha Arvensis is traditionally used in patients with hypertension and ischemic heart disease.
On September 17, 2021, during its 45th meeting, the GST Council recommended that menthol oil be subject to a reverse charge for GST. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification 30th September 2021 notifying the applicability of RCM on supply of Mentha Oil by an unregistered person to a registered person.
The Mentha oil is now taxable by an unregistered person to a registered person shall now be taxable under RCM under section 9(3) of the Central Good and Services Tax Act, 2017. Similarly, in this 48th GST Council Meeting, recommended to include the Mentha Arvensis into the ambit of the Section 9(3) of the Goods and Services Tax Act, 2017.
The meeting was also attended by Union Minister of State for Finance Shri Pankaj Choudhary besides Finance Ministers of States & Union Territories (with legislature) and senior officers of the Ministry of Finance & States/ Union Territories.
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