In the 49th meeting of the GST Council, it was decided to release the entire arrears of Compensation Cess. Along with this, the council has recommended rationalising penalties for late filing of annual GST returns. The GST Council has also decided to reduce GST on liquid jaggery, pencil sharpener and some tracking devices. This means that these items will be cheaper.
What Did The Finance Minister Say?
After the council meeting, Union Finance Minister Nirmala Sitharaman said that Raab is a type of liquid jaggery that is very important for Uttar Pradesh and other jaggery-producing states. We are reducing the GST rate on Rab from 18% to nil or 5%. If it is loose, no GST will be payable; if it is pre-packaged and labelled, it will attract 5% GST.
Raab is a kind of liquid jaggery which is so typical to Uttar Pradesh & other jaggery-producing states. We are reducing the GST rate on Raab from 18% to nil or 5%. Nil if it is loose. If it is pre-packaged and labelled, it will be 5%: Union FM Nirmala Sitharaman pic.twitter.com/eeQJ83tg0o
— ANI (@ANI) February 18, 2023
Nirmala Sitharaman also informed that reports of the GOM (Group of Ministers) on Goods and Services Tax Appellate Tribunal (GSTAT) to probe tax evasion by the Pan Masala and Gutkha industry have arrived. However, the Finance Minister has not informed me about this decision.
Finance Minister Nirmala Sitharaman said that all GST compensation, including Rs 16,982 crore for June, would be paid. Finance Ministers of States and Union Territories and senior Central Government and States officers attended the meeting.
