According to an official, the GST Council is likely to extend the tenure of the National Anti-profiteering Authority (NAA), which deals with customer complaints regarding not receiving tax cut benefits, till 30 November 2020.The Council, under new Finance Minister Nirmala Sitharaman, is also likely to consider a proposal to set up one appellate tribunal for north-eastern states, and another one for all Union Territories. The Council will also discuss a proposal to levy Goods and Services Tax (GST) on extra-neutral alcohol (ENA), which is used for manufacturing alcoholic liquor for human consumption on 21st June.
ENA a is derivative of sugarcane molasses (95% high-purity ethyl alcohol) and is not an alcoholic liquor for human consumption but can be used as raw material or input, after processing and substantial dilution, in the production of whisky, gin, country liquor etc.
The GST law provides for setting up of benches of appellate tribunal in all states. 18 states have got the approval to set up appellate benches, however none of these states have operationalised them. The GST Council in its next meeting is likely to approve the proposals of Delhi, Odisha and Telangana to set up appellate tribunal benches.
The Council will also take a call on setting up a combined bench for all north-eastern states as well as one bench to deal with appeal cases in six Union Territories — Chandigarh, Puducherry, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, and Andaman and Nicobar Islands, the official said.
States have divergent views on levying GST on ENA. Larger states like West Bengal, Rajasthan, Haryana, Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra have been of the view that ENA should be out of GST.States levy Value Added Tax (VAT) and Central Sales Tax (CST) on ENA and states will have to forgo the right to tax the product if it is brought under GST.
Currently, potable alcohol is out of the ambit of GST and states are free to levy taxes on them.Among other things, the GST Council will also consider issuance of e-invoice by entities with turnover of over 50 crore for business-to-business (B2B) sales in a bid to curb GST evasion.
