Expect liquor prices to stabilise: impact of GST council decisions

The GST council in India has reduced the Goods and Services Tax (GST) on molasses used in the production of hard liquors. Furthermore, control over the taxation of extra neutral alcohol (ENA), the main ingredient in hard liquors, will be transferred to the states. This move is expected to prevent any increase in liquor prices, benefiting both the industry and consumers. Additionally, the reduction in GST on molasses will increase liquidity for mills and help clear cane dues for sugarcane farmers.