The Lok Sabha has passed a bill to replace the Manipur Goods and Services Tax (Amendment) Ordinance, 2025, ensuring timely implementation of key changes to the state's GST framework. The bill was cleared by a voice vote amid uproar in the House.
Introducing the bill, Finance Minister Nirmala Sitharaman stressed that the amendment was a "constitutional necessity" and urgent for the state's fiscal health. "If it doesn't pass now, the state will have difficulty in implementing the amendments that have long been approved by the GST Council. Their revenue will be affected because they won't have the authority to charge tax on certain items," she said.
One of the significant changes in the bill is the amendment to Section 9 of the Manipur GST Act, 2017, allowing the state to levy tax on un-denatured extra neutral alcohol (ENA) or rectified spirit used in the manufacture of alcoholic liquor for human consumption.
The move follows the 52nd GST Council meeting held in October 2023, where it was recommended to keep ENA used for producing alcoholic liquor for human consumption outside the GST regime, giving states the right to impose their own taxes on it.
The amendment is expected to safeguard Manipur's tax revenue and provide clarity for businesses involved in the production of liquor, ensuring compliance with both state and national tax policies.
CAclubindia
