The GST Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. One of the key decisions of the council meeting is to slash the Goods and Services Tax (GST) Rate of Liquid Raab or Rab Jaggery to Nil for loose sales and for pre-packaged and labeled Raab to 5% from the 18% slab.
The GST Council had reduced the GST Rate on Rab Jaggery from 18% to 5% on pre-packaged and labeled 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.
The GST Council had undertaken several decisions related to GST Rate rationalization today. The council has reduced the GST Rate for Pencil Sharpeners from 18% to 12%. It also clarified that the supply of sharpeners along with pencils is covered under the category of “mixed supply.”
The council has also decided to amend notification No. 104/94-Customs to provide nil IGST treatment for devices like tag-tracking device or data logger already affixed on a container, subject to existing conditions.
In addition, the council has decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
Support our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.
