The recent decisions by the Goods and Services Tax (GST) Council have brought clarity to a number of long-standing tax ambiguities. Notably, the resolution of the tax treatment on corporate and personal guarantees for bank loans and the significant reduction of GST on molasses from 28% to 5% are commendable moves. The latter, in particular, is expected to ease the financial burden on sugar mills, thereby accelerating payments to farmers. However, the Council’s decision to abstain from taxing extra neutral alcohol (ENA) used in alcoholic beverages is particularly noteworthy. Given that alcohol for human consumption remains outside the GST purview, taxing ENA would have complicated matters, especially since the tax couldn’t be offset against State levies on the final product. The industry’s plea for clarity on this matter has finally been addressed, marking an end to years of legal wrangling and inconsistent court rulings. The increased frequency of the Council’s meetings this year, compared to the previous year, is a positive sign. Looming large is the Council’s upcoming discussion on the future of the GST Compensation Cess and its potential replacement. While the initial intent of this Cess was to compensate States for revenue losses during the first five years of GST, the pandemic-induced economic downturn led to its extension till March 2026. While discouraging the consumption of certain goods through taxation is a valid strategy, any new cess should be introduced as part of a broader GST rationalization effort. Despite the commendable steps taken by the Council, the GST regime still requires comprehensive reform. The ongoing exclusion of items like electricity, petroleum, and alcohol from the GST net is a glaring omission. While addressing immediate concerns is crucial, the Council must also focus on a holistic reform plan for the GST, ensuring it truly becomes the ‘Good and Simple Tax’ it was envisioned to be.