GST Council set to amend alcohol tax laws, enable dispute settlement
The Goods and Services Tax (GST) Council is planning amendments to GST laws concerning extra neutral alcohol (ENA), a highly pure form of alcohol used in liquor production but not for direct consumption. These changes aim to clarify that ENA should not be subject to GST, potentially bringing much-needed relief to the spirits industry by avoiding dual taxation.
In addition to the legislative tweaks, the Council is also expected to propose a scheme that would allow central and state tax authorities to drop the recovery of past tax dues, benefiting the spirits sector. This move is part of a broader effort to resolve ongoing tax disputes and streamline the taxation process.
At its meeting scheduled for Saturday in the national capital, the GST Council will review amendments recommended by a committee of officers. This committee was tasked with drafting legislative changes to ensure ENA remains outside the GST regime—a decision first taken at the GST Council’s 52nd meeting on October 7 last year, according to two people with the Centre-state discussions.
