On 7th August, the Lok Sabha passed the Manipur Goods and Services Tax (Amendment) Bill, 2025. This bill aims to implement changes approved by the GST Council. The bill replaces the Manipur GST (Amendment) Ordinance, 2025, and was cleared by a voice vote amid uproar in the House.

Finance Minister Nirmala Sitharaman, while moving the bill, stated that the amendment is a constitutional requirement. It must be passed immediately. If delayed, the state could face challenges in implementing the Council’s decisions. Additionally, it may lose revenue as it would lack the authority to levy taxes on certain items.

One key change under the bill is the amendment to Section 9 of the Manipur GST Act, 2017. This allows the state to levy GST on un-denatured extra neutral alcohol (ENA) or rectified spirit. These are used in the production of alcoholic liquor for human consumption.

The GST Council, in its 52nd meeting in October 2023, had recommended keeping ENA used for making liquor for human use outside the ambit of GST. Thus, allowing states to tax it separately.

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