The 27th meeting of the GST Council today decided to defer a final decision on Sugar Cess. Earlier, there were reports that the Central Government is likely to introduce sugar cess under the Goods and Services Tax ( GST ) regime after getting the approval of the Council.
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.
Reportedly, the States were against imposing sugar cess as it is totally against the concept of GST.
The Council further directed the Group of Ministers to discuss the issue and make a recommendation to the Council in this regard.
