TaxTMI 
TaxTMI 
Rate of tax on Extra Neutral Alcohol
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....ate of tax on Extra Neutral Alcohol<br> Query (Issue) Started By: - Subbarao PV Dated:- 1-10-2024 Last Reply Date:- 2-10-2024 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>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....
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.... 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 Reply By Shilpi Jain: The Reply: ENA would be liable @ 18% under residual entry. Reply By KASTURI SETHI: The Reply: Levy of GST on ENA Commissioner of State Tax and Excise, Himachal Pradesh, Shimla, Endst. No. 12-13/2018-19-....
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....EXN-GST-23205-23223, dated 1-8-2018 This is with reference to the issue raised on the captioned subject during the Video Conference held on 30-6-2018. This matter was discussed in the 20th meeting of GST Council on 5-8-2017 wherein it was decided to obtain legal opinion of Attorney General of India. Attorney General of India vide reference No. AGI 6/2017-Adv.C, dated 3-12-2018 has given following....
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.... opinion on the issue : "ENA typically contains 95% alcohol by volume and as such is not fit for human consumption. Under Article 246A (1) read with 366 (12A), GST cannot be levied on the supply of "alcoholic liquor for human consumption". ENA that is used for manufacture of alcoholic liquor is not supply for the purpose of human consumption as it is not consumed directly, but goes through a pro....
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....cess of manufacture. For the reasons above, I am of the opinion that the judgment of the court in "Bihar Distillery" does not denude the Centre or the States of the power to levy GST on ENA that is used to manufacture alcoholic liquor for human consumption." In view of the above it is informed that GST will be applicable on the supply of ENA which is used for the manufacturing of alcoholic liqu....
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....or for human consumption. Accordingly the suppliers of ENA are required to be registered under GST Act & GST is to be levied on the supply of ENA. It is further informed that as per Entry No. 25 of Schedule-III of the Notification No. 1/2017-State Tax (Rate), dated 30-6-2017 and 1/2017-Central Tax (Rate), dated 28-6-2017 the supply of ENA is exigible to be taxed @ 18% GST. Reply By Padmanathan KV....
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....: The Reply: Agreed with views of experts. Taxable at 18%.<br> Discussion Forum - Knowledge Sharing ....