• 07 Oct 2023 05:32 PM
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GST Council Meet: Tax-levying power on ENA ceded to states, distilled alcohol exempted; other key decisions

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The 52nd Goods and Services Tax (GST) Council meeting on Saturday, October 7, ceded the right to levy tax on extra neutral alcohol (ENA)-supplied for the manufacture of alcoholic liquors - to the states.

The 52nd Goods and Services Tax (GST) Council meeting on Saturday, October 7, ceded the right to levy tax on extra neutral alcohol (ENA)-supplied for the manufacture of alcoholic liquors - to the states.

"ENA (potable alcohol) for human consumption will be exempt from GST and the same will be communicated to the Supreme Court," Chhattisgarh Deputy Chief Minister T S Singh Deo told reporters after the GST Council meeting. However, ENA manufactured for industrial purposes will continue to be under the ambit of GST and attract 18 per cent tax, according to the Council.

Also Read: GST Council Meet: Tax on millet flour preparation slashed to 5% from 28%; check details

Addressing a post-meeting press conference, Finance Minister Nirmala Sitharaman said, ''If the states want to tax it, they are welcome to do it. If the states want to leave it, they are welcome to take a call on it. The GST Council is not taking a call to tax it, although the right to tax lies here. So in the interest of the states, we have, if I may use the word ceded that right to the states.''

Among other key decisions taken by the GST Council today, tax on millet flour food preparations has been slashed from the current 18 per cent GST to 5 per cent. The GST Council also decided to cap the maximum age of President and members of the GST Appellate Tribunal (GSTAT). 

The GSTAT President will have a maximum age cap of 70 years, while the limit for members will be 67 years. This is a change from the earlier age limit of 67 and 65 years, respectively, for the President and members of GSTAT.

Advocates up to 10 years of experience will be eligible for appellate tribunal member. FM Sitharaman-led GST Council also decided to reduce GST on molasses to 5 per cent, from 28 per cent, and exempt alcohol for human consumption from the levy.

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The meeting was attended by Union Minister of State for Finance, MP Poonia, along with Finance ministers of various States and Union Territories (with Legislature), as well as senior officials from both the Union government and the states.

The GST Council convenes periodically to deliberate on matters related to the GST regime, including tax rates, policy changes, and administrative issues. The 52nd meeting was aimed at discussing critical issues affecting the Indian tax system and finding collaborative solutions.

The GST Council plays a pivotal role in shaping India's indirect tax structure, ensuring that it aligns with the nation's economic goals and eases the tax burden on citizens and businesses.