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The Economic Times
The Economic Times
Najib Shah

Industrial alcohol is the GST Council's unfinished federal business: States won the legal fight, but the 18% GST still applies

GST Council Alcohol Constitution Bench UP

GST Council is a forum where Centre-state partnership is seen in full force. In the spirit of federalism, there is one issue that the council should decide on when it meets on Thursday: industrial alcohol.

Industrial alcohol and potable (drinkable) liquor are both made from rectified spirit, a concentrated spirit containing up to 95% alcohol. Rectified spirit is further processed, and its alcohol strength reduced - to up to 42.5% in the case of whisky, and lower depending on the beverage - to make it drinkable. When rectified spirit undergoes 'denaturation' - making it unfit for human consumption - it becomes industrial alcohol, a critical input for the pharma, chemical and cosmetic industries.

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