Tax on liquor production input: AAR puts ball in GST Council's court

Is it legally permissible to impose the goods and services tax (GST) on extra-neutral alcohol (ENA), an input in liquor making?

No one is quite sure at the moment. For, alcohol for human consumption or potable alcohol is outside GST. While, industrial alcohol is within it.

The central government wants to impose the levy; many states are opposed – at least, to the Centre doing so. They see this as their own prerogative; – they currently levy value-added tax (VAT) and sales tax on ENA.

There is, however, counter-pressure from businesses. The pharmaceutical industry, for one, has been demanding inclusion