The Chairman of Som Distilleries expressed his satisfaction with the clarification from the GST Council stating that alcohol, which is under state purview, cannot be taxed.
Happy days are here for alcohol enthusiasts! The GST council meeting brought some exciting news for the liquor industry. The beloved drink will not be taxed under GST, which brought a sigh of relief to Som Distilleries’ Chairman, JK Arora.
He shared his happiness with CNBC-TV18, stating that the GST department had been clamping down on taxing the alcohol they use, but this decision clarifies that alcohol is under state purview, so the GST council can’t impose any tax on it.
The GST council also reduced the GST rate on molasses from 18% to 5%. However, they decided to keep GST on extra neutral alcohol (ENA) for industrial use under the Centre’s jurisdiction, as per the Allahabad High Court ruling.
But the states have the power to tax it if they choose to. With these announcements, the liquor industry can raise a glass to a better future!