ICCK

The GST Council meeting on Saturday is likely to focus on the immediate business at hand and issue several clarifications on issues flagged by various industries, including on extra neutral alcohol (ENA).

Despite intense lobbying by the powerful lobby and vocal investors, the all-powerful panel headed by union finance minister Nirmala Sitharaman will steer clear of issues, such as a review of levies on online gaming and casinos, which attract 28% GST. The Council had earlier decided to review the tax after six months, prompting companies and their vocal backers to raise the demand soon after the Modi govt was sworn in for a third term.

Tax consultants were also expecting the process of rationalisation of GST rates to start after the new govt took charge. "This meeting will focus on issues that require legal changes as they can be dealt with in the Finance Bill," an official said. Sitharaman will move her tax proposals in the Budget, scheduled for next month.

ENA is one of the issues that requires amendments. Last October, the Centre ceded the right to levy GST on ENA and left it in the domain of the states. The law committee of the council was asked to examine if amendments are required to exclude ENA for use in manufacture of alcoholic liquors for human consumption from the ambit of GST. The amendments are expected to provide greater clarity on the matter. The issue of how the cases related to anti-profiteering body will be dealt with may also figure on the agenda.

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