According to the GST Council’s suggestion at its 49th meeting, which was conducted on February 18, 2023, the CBIC clarified the Goods and Services Tax (GST) rate and the classification of “Rab” in Circular No. 191/03/2023-GST, dated March 27, 2023.
Rab would henceforth be subject to a 5% GST charge when sold in a pre-packaged and labelled container and a 0% GST rate when sold in a container other than one, as per the GST Council’s recommendation at its 49th meeting, which was conducted on February 18th, 2023.
In addition, in accordance with the GST Council’s proposal in the aforementioned meeting, the issue for the prior period is hereby regularised on a “as is” basis due to the prevalent conflicting interpretations and genuine questions over the applicability of the GST rate on Rab.
The GST Council, presided over by Finance Minister Nirmala Sitaraman took important decisions is to reduce the Goods and Services Tax (GST) Rate of Liquid Raab or Rab Jaggery to Nil for loose sales and to 5% from the 18% slab for pre-packaged and labelled Raab.
The GST Council had reduced the GST Rate on Rab Jaggery from 18% to 5% on pre-packaged and labelled Raab. If the same is sold without packaging and label, it will not attract any GST.
In addition, the council has decided to regularize payment of GST on Rab Jaggery during the past period on “as is basis” due to genuine doubts over its classification and applicable GST rate.
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