A welcome step for the industry: ISWAI

Suresh Menon, Secretary-General of the International Spirits and Wines Association of India (ISWAI)said, “Today’s decision by the GST Council to cede taxing control on un-denatured ethyl alcohol (ENA) to the States is a major and very welcome step for the industry. Menon said that it brings finality to an issue that has been hanging fire for the six plus years since GST came into being. The alcoholic spirits industry has been making the case for continuing to keep the taxation of this item within the taxing domain of the States, as had been the practice pre-GST. “The possibility of an increase in taxes and hence in the cost of this essential ingredient in the manufacture of alcoholic spirits if ENA were to be taxed to GST, thereby pushing up the prices of the end alcoholic beverage, now falls away, and is very welcome,” he further said. ISAWI Secretary General said that the industry is grateful to the members and the secretariat of the GST Council for this very critical decision for the sector. Likewise, also for the reduction in the rate of GST on molasses to 5% (from the current 28%), which should make for a level playing field for distillers of both grain and molasses (both integrated and standalone).