Will alcohol and realty come under GST? The jury is still out

Will alcohol and realty come under GST? The jury is still out

Mythili Bhusnurmath: One of the good things about the GST Council is that it shows a maturing of our fiscal federalism, because political issues have been broadly kept aside and the council has focussed on economic issues. So, political differences have not come in the way of forging ahead on GST. But, I do not expect too much forward movement in this meeting simply because the items such as alcohol and real estate are far too contentious. So, I do not see too much movement.Maybe on the e-way bill, you might find a further deferment, because 1st of April still looks a little difficult.

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ET Now: Can you explain the alcohol issue?

Sandeep Chilana:
As far as the agenda of the GST Council is concerned, the question before the GST Council is not whether the alcohol for human consumption should be bought within GST, because the constitutional powers to tax alcohol for human consumption is with the state government.

Now, because of the drafting of the GST, interpretation issue arose whether ENA which is extra neutral alcohol or methyl alcohol, etc., are chargeable to GST or not, because the GST tariff only referred to denatured alcohol. The interpretation that came out is that ENA was covered under the category and was therefore chargeable to 18 per cent. It caused a lot of problem for the alcohol industry, because that 18 per cent was not creditable. There were two views; while the state government………….Read More>>

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