New Delhi, October 7: In its 52nd meeting, the GST Council made significant decisions regarding the taxation of certain products. The council announced a reduction in the GST rate on molasses, slashing it from 18 percent to 5 percent. Additionally, alcohol meant for human consumption has been exempted from GST.
Chhattisgarh Deputy Chief Minister T S Singh Deo, who is a member of the GST Council, clarified that extra neutral alcohol (ENA) intended for industrial use will continue to be subject to Goods and Services Tax (GST).
Deo stated, “ENA (potable alcohol) for human consumption will be exempt from GST, and this decision will be communicated to the Supreme Court.” This exemption marks a significant change in the taxation of alcohol for human consumption.
Furthermore, the tax rate on molasses, which is a by-product of sugarcane and serves as a raw material for alcohol production, has been reduced substantially from the existing 18 percent to 5 percent.
Deo also mentioned that some states, including Delhi and Goa, raised concerns about online gaming companies facing GST demand notices for alleged tax evasion.
“There were discussions about charges (tax demand notices) on these companies being applied retrospectively. Since DGGI is an independent body, there cannot be any interference. The (GST Council) chairperson stated that she would provide clarifications to DGGI if needed,” added Deo.
The decisions made during this meeting of the GST Council reflect changes aimed at easing the tax burden on certain products while addressing concerns raised by states and industries regarding taxation issues.
