Tax Amendments Impacting Alcohol, Residues, and Beverages
Government's Authority:
G.S.R. (E) invokes powers under the UTGST Act, 2017, amending tax regulations for Union Territories.
Alcohol for Blending:
Ethyl alcohol supplied to Oil Marketing Companies or Petroleum refineries for blending with motor spirit (petrol) faces revised tax treatment at 2.5%.
Residues from Cereals:
Residues from cereals, excluding specific agricultural by-products, encounter a modified tax rate at 2.5%.
Fruit Pulp Drinks:
Fruit pulp or fruit juice-based drinks (excluding specific categories) now fall under the 6% tax bracket in Schedule II.
School Supplies:
Mathematical boxes, geometry boxes, and colour boxes experience a tax adjustment, now taxed at 6%.
Higher Tax on Denatured Spirits:
Ethyl alcohol and other spirits, denatured, of any strength face an increased tax rate at 9%.
Effective Date:
The amendments become effective from January 1, 2023, allowing for a transition period.
Note: These changes reflect nuanced adjustments to tax rates, emphasizing government considerations for specific industries and consumer goods.