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GST Council may give 1-year extension to anti-profiteering authority


NEW DELHI: The GST Council is more likely to extend till November 30, 2020 the tenure of the National Anti-profiteering Authority (NAA), which deals with customer complaints referring to no longer receiving tax minimize benefits, at its subsequent meeting on June 21, an legitimate mentioned.

The Council at its 35th meeting, the first under new Finance Minister Nirmala Sitharaman, could also be more likely to consider an offer to arrange one appellate tribunal for north-eastern states, and any other one for all Union Territories.


Besides, the Council would speak about an offer to levy Goods and Services Tax (GST) on extra-neutral alcohol (ENA), which is used for manufacturing alcoholic liquor for human consumption, the legitimate added.

ENA a is spinoff of sugarcane molasses (95 in step with cent high-purity ethyl alcohol) and isn't an alcoholic liquor for human consumption but can be utilized as uncooked material or input, after processing and really extensive dilution, within the manufacturing of whisky, gin, nation liquor and so forth.

The Finance Ministry is of the view that NAA must be given an extension of 1 year till November 30, 2020 as the authority continues to receive complaints of profiteering by way of firms, the legitimate advised PTI.

The NAA is raring for a two-year extension, the legitimate mentioned, adding the general name will likely be taken by way of the GST Council in its meeting on June 21.

Earlier, the meeting used to be scheduled for June 20, but has now been postponed to June 21.

Soon after the GST used to be rolled out from July 1, 2017, the federal government had authorized putting in of the NAA for 2 years to deal with complaints by way of consumers towards firms for no longer passing on GST fee minimize benefits.

The NAA came into lifestyles on November 30, 2017, after its Chairman B N Sharma assumed fee. So a ways, the NAA has handed 67 orders in various circumstances.

The GST regulation supplies for putting in of benches of appellate tribunal in all states. Although 18 states have were given the approval to arrange appellate benches, none of these states have operationalised them.

The GST Council in its June 21 meeting is more likely to approve the proposals of Delhi, Odisha and Telangana to arrange appellate tribunal benches.

The Council may even take a call on putting in a combined bench for all north-eastern states in addition to one bench to deal with enchantment circumstances in six Union Territories -- Chandigarh, Puducherry, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, and Andaman and Nicobar Islands, the legitimate mentioned.

With regard to bringing ENA under GST, states have divergent perspectives on levying GST. Larger states like West Bengal, Rajasthan, Haryana, Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra had been of the view that ENA must be out of GST.


States levy Value Added Tax (VAT) and Central Sales Tax (CST) on ENA and states will have to forgo the best to tax the product if it is brought under GST.


The GST Council had previous sought the opinion of the Attorney General on legality of imposing GST on ENA. The AG had then opined that since ENA isn't consumed immediately by way of other people, GST will also be imposed on it.


Currently, potable alcohol is out of the ambit of GST and states are unfastened to levy taxes on them.


Among other issues, the GST Council may even consider issuance of e-invoice by way of entities with turnover of over Rs 50 crore for business-to-business (B2B) sales in a bid to curb GST evasion.


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