The Central Government is likely to introduce a new cess called, sugar cess under the Goods and Services Tax ( GST ) regime, ET reported. A final decision in this regard will be taken by the GST Council in its 27th meeting being held via video-conferencing on Friday.
Though it is against the principles of the GST laws, Sugar cess is a part of the GST Council’s agenda, but gains significance after the Cabinet meeting on Wednesday approved financial assistance at the rate of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost of cane and in order to help sugar mills to clear cane dues of farmers, ET reported.
Reportedly, due to depressed market sentiments and crash in sugar prices, the liquidity position of sugar mills has been adversely affected, leading to accumulation of cane price dues of farmers which have reached topped over Rs.19,000 crore. India last had a Sugar cess under The Sugar Cess Act 1982, the Sugar Development Fund Act 1982, but was abolished in 2017.
Currently there are a few more cess continue, but they are either on Customs or goods outside GST.