GST Council meet: Council has ceded the right to tax extra neutral alcohol to states, says FM Sitharaman

Speaking on the levy, Ankur Gupta, Practice Leader – Indirect Tax at SW India, said: “Taxing the ENA for industrial use will increase the cost of production and by introducing a new levy it was important to explain the rationale behind it which is why Honble FM Ma’am gave the background on ENA and it’s taxability. Also With GST council ceding the right to levy GST on ENA, we might also see some states imposing VAT on ENAs.”

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