TMI BlogTAXABILITY OF ALCOHOL FOR NON-HUMAN CONSUMPTION UNDER GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... TAXABILITY OF ALCOHOL FOR NON-HUMAN CONSUMPTION UNDER GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 6-12-2021 - - It is well known that supplies of all goods and services or both are liable to levy of goods and services tax (GST) except on the supply of alcoholic liquor for human consumption. The charging section in GST, i.e., section 9(1) of CGST Act, 2017 and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 5(1) of IGST Act, 2017 provides for this. Thus, alcoholic liquor meant for human consumption can not suffer levy of GST at all- so far, so well. However, this exemption or waiver is conditional and that mandatory condition for non-levy of GST is that such alcohol must be meant for human consumption. What does alcohol for human consumption mean ? These are rectified spirits (ethyl alcoh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol), Extra Neutral Alcohol (ENA) and Ethanol (alcohol, ethyl alcohol, grain alcohol). ENA is the purest version of alcohol prepared from sugarcane, molasses, grain like barley, wheat, barley, rice etc. These can be used for both- human as well as industrial consumption. If diluted and unless converted into denatured, they can be considered fit for human consumption. Once denatured, these can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e used for producing country liquor. Taxing liquor for human consumption is a State subject and is sole jurisdiction of state Government. The States levy State Excise Duty on production and Value Added Tax (VAT) on sale of such products. No GST at all. Country liquor, India made foreign liquor (IMFL) and beer, including other intoxicating drinks are thus, taxed by states only. Then whether w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heat alcohol gets covered under GST ? Following products of alcohol are taxed under GST- HSN Code Product Rate of GST 2207 Ethyl alcohol or other spirits, denatured, of any strength 18% 2207 Ethyl alcohol supplied to oil marketing companies for blending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with motor spirits 5% The above goods are meant for non-human consumption and for industrial use and thus, liable to levy of GST. In other words, ethyl alcohol made unfit for human consumption by the process of denaturing is only taxed under GST laws. Not all types and forms of alcohols are liable to GST. - Reply By OmPrakash jain as = Sir, While manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring Alcohol, DWGS (Distillers Wet Grain Solubles) in Wet Form is also produced, which is termed as Wet Cake in the Industry. During distillation process, only the starch portion present in the Grain is utilized in production of the Alcohol, which is the main product, and the other components viz., protein, fibre and oil are not utilized in the production of Alcohol. The ARA Rajasthan in their A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance Ruling dated 25.10.2021 2 022 (2) TMI 1210 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN - IN RE: M/S. ADS AGRO INDUSTRIES PRIVATE LIMITED , have held that DWGS is a kind of brewing or distilling dregs waste and is classifiable under Chapter Heading/Sub-heading/Tariff item 2303 of GST Tariff is liable to GST @5%. Dated: 6-12-2021 - Scholarly articles for knowledge sharing authors exper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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