Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-6-2018 – Liquor companies have now come out of demonetization, highway sales ban and Goods and Services Tax (GST) hangover and can be said to be in high spirits, if the numbers are to be believed. Infact 2018 so far has seen revival of demand of Indian Made Foreign Liquor (IMFL) by 2-3 percent, which was in negative for last two years. The slow down during 2016-2018 was mainly due to adverse effect of demonetization in November, 2016 followed by highway sale ban by Supreme Court in March, 2017 and then GST w.e.f. 1st July, 2017. The impact of all these one after the other reasons have largely stabilized and business can be said to be near normal now. On whether to include
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ring liquor. The rest is used by the pharmaceutical industry to manufacture cough syrups and the cosmetics industry to make perfumes. It may be noted that industrial alcohol is already under the GST net. If this happens, alco-beverages sector will enter another complex situation, viz, ENA being subjected to GST whereas output, i.e., alco-beverages being out of GST net, leading to enhanced cost of production without any set off benefit of input taxes in the form of GST. It may be technically correct to levy GST on ENA as it is not a potable liquor (meant for human consumption), yet it will bring in more distortions but of course, more revenue too to the exchequer. However, the VAT paid on the purchase of ENA can be used as a set-off on the V
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