In a momentous development, a culmination of 6.5 years of advocacy led by ISWAI, Secretary-General Mr. Suresh Menon expressed jubilation over the recent decision by the GST Council.

This decision grants States control over the taxation of un-denatured ethyl alcohol, commonly referred to as Extra Neutral Alcohol (ENA), marking a major and highly welcomed step for the industry.

The resolution brings conclusive clarity to a lingering issue that has persisted for over six years since the inception of GST.

The alcoholic spirits industry, under the leadership of ISWAI, had consistently advocated for maintaining the taxation of ENA within the domain of the States, aligning with the pre-GST practice.

The potential rise in taxes and subsequent increase in the cost of this essential ingredient in alcoholic spirits production, if subjected to GST, is now alleviated. This development is warmly received by the industry, extending gratitude to the members and secretariat of the GST Council for this critical decision.

Additionally, the industry commends the GST Council for reducing the GST rate on molasses to 5%, a significant drop from the current 28%.

This adjustment is expected to foster a level playing field for distillers working with both grain and molasses, whether integrated or standalone. The sector anticipates positive implications for competition and fair practices following these notable decisions by the GST Council.