Liquor industry welcomes decision to keep key alcohol ingredient out of GST

The ingredient, extra-neutral alcohol, accounts for 30-35% of the production cost for Indian-made foreign liquor

Liquor industry wants alcohol to be brought under the goods and services tax (GST), but is elated with the GST Council's exemption to extra-neutral alcohol (ENA), a key ingredient of alcoholic beverages.

What explains this apparent contradiction within the liquor industry?

Vinod Giri, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), sheds light on this paradox, explaining that the industry's ideal scenario would involve bringing all aspects of alcohol production under GST to ensure uniform tax rates and pricing nationwide. However, he points out a significant challenge: if raw materials face GST while the final