No Impact On Liquor Prices Despite Change In GST On Key Ingredient

(MENAFN- Live Mint) "New Delhi: Liquor prices are unlikely to see any change despite the Goods and Services Tax (GST) Council's decision to keep extra neutral alcohol (ENA)--a key ingredient used in the manufacturing of alcohol--out of the GST net, according to an industry executive Council, in its 52nd meeting on Saturday, decided to keep ENA out of GST ambit, in a relief to the liquor industry, a person informed about the discussions at the meeting said the decision of the federal indirect tax body, ENA will be governed by 2% central sales tax (CST) on inter-state sales, rather than the 18% integrated GST (IGST).The 2% CST is already factored into the prices of liquor and producers have been paying CST, with the matter under.
An industry executive said that this has been a long standing demand of the manufacturers, hailing the move as a landmark decision Council also lowered GST rate on millet based flour to 5% from 18%, said the first person cited above the tax rate on millet mix, in which millets account for 70%, is expected to promote its consumption, a priority for the government. The year 2023 is being observed as the International Year of Millets deputy chief minister TS Singhdeo told reporters after the meeting that GST rate on molasses has been lowered to 5% from 18%.
The first person quoted above said that this decision will help free up capital for sugar factories, helping them make early payments to cane farmers.

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