GST Council Chooses To Reduce Molasses Tax To 5%

The GST Council resolved on Saturday to decrease the GST on molasses to 5 percent from 18 percent and to remove alcohol for human consumption from the levy.

T S Singh Deo, Deputy Chief Minister of Chhattisgarh, stated that extra-neutral alcohol (ENA) for industrial usage will continue to be subject to the Goods and Services Tax (GST).

“ENA (potable alcohol) for human consumption will be exempt from GST and the same will be communicated to the Supreme Court”, said Deo following the GST Council’s 52nd meeting.

“The tax rate on molasses, a by-product of sugarcane and used as raw material for alcohol production, has been reduced to 5 percent from 18 percent currently”, Deo continued.

He went on to say that other states, such as Delhi and Goa, have addressed the issue of online gaming companies receiving GST demand letters for alleged evasion.

“There was discussion on charges (tax demand notice) on these companies retrospectively. Because DGGI is an independent body, there cannot be any interference. The (GST Council) chairperson stated she would make clarifications available to DGGI if required”, Deo added.

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