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ENA for human consumption to be out of the GST

The 53rd GST Council meeting in New Delhi has recommended exempting Extra Neutral Alcohol (ENA) used in alcoholic beverages from GST, potentially boosting the alcobev industry.

New Update
ENA for human consumption to be out of the GST

The 53rd GST Council meeting brought a much-awaited good news for the alcobev industry today. The council recommended eexcluding the rectified spirit/Extra Neutral Alcohol (ENA) from the scope of   GST when supplied for manufacturing alcoholic beverages for human consumption.

Today, the 53rd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman in New Delhi. The GST Council inter alia made certain recommendations relating to changes in GST tax rates, trade facilitation measures and streamlining GST compliances that will benefit the alcobev industry at large.

The GST Council has recommended an amendment in sub-section (1) of Section 9 of the CGST Act, 2017 for not levying GST on Extra Neutral Alcohol used for the manufacture of alcoholic liquor for human consumption.

On the issue of changes in GST rates of goods, the GST Council recommended that the GST rate on cartons, boxes and cases of both corrugated and non-corrugated paper or paperboard (HS 4819 10; 4819 20) be reduced from 18% to 12%.

The  GST Council also recommended inserting a new Section 11A in  the CGST Act to give powers to the Government, onthe recommendations of the Council, to allow regularization of non-levy or short levy of GST, where tax was being short paid or not paid due to common trade practices.

ISAWI welcomed these recommendations of the GST council and stated, “Good news for the entire alcobev industry is the agenda of the 53rd GST Council meeting on the 22nd of June to include the topic of non-applicability of GST on ENA and the granting of power not to recover duties not levied or short levied as a result of general practice under GST Act.”

ISAWI also congratulated the Secretary General of ISAWI and member teams and the CIABC Office for a unified approach.