GST Council decides to cut tax on molasses to 5%: TS Singh Deo

The GST Council on Saturday decided to cut the Goods and Services Tax (GST) on molasses to 5%, from 18%, and exempt alcohol for human consumption from the levy. Chhattisgarh Deputy Chief Minister TS Singh Deo, who is a member of the GST Council, said extra-neutral alcohol (ENA) for industrial use will continue to attract GST.

“ENA (potable alcohol) for human consumption will be exempt from GST and the same will be communicated to the Supreme Court,” Deo told reporters after the 52nd GST Council meeting. The tax rate on molasses, a by-product of sugarcane and used as raw material for alcohol production, has been slashed to 5% from 18% currently, Deo added.

Deo added that some states like Delhi and Goa raised the issue of online gaming companies facing GST demand notices for alleged evasion.

“There were discussions on charges (tax demand notice) on these companies retrospectively. Because DGGI is an independent body, there cannot be any interference. The (GST Council) chairperson said she would make clarifications available to DGGI if required," Deo added.