Rate of tax on Extra Neutral Alcohol

[Subbarao PV]

Due to the amendment made to Section 9 of the GST Act, 2017 effective from 1.11.2024, 'un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption” is kept out of the purview of the GST.

Is there any clarification on the exigibility to tax (whether VAT or GST and at what rate) during the period from 1.7.2017 to 31.10.2024

AI Summary

Taxability of extra neutral alcohol: GST applies as a residual taxable supply and suppliers must register and charge tax.
Supply of un denatured extra neutral alcohol (ENA) used to manufacture alcoholic liquor is treated as a residual taxable supply under GST because ENA is not fit for direct human consumption; suppliers must register under GST and charge tax on ENA, and administrative notifications apply the residual-rate treatment to such supplies for the GST period prior to the later statutory amendment.