Govt wants cess on sugar, GST Council delegates power to GoM
Union Finance Minister Arun Jaitley right now stated after the GST Council meet group of ministers can be constituted to determine on new cess on sugar to lift funds for cane growers. (Photograph: PTI)
- GoM to determine on new cess on sugar
- Choice was taken at GST Council meet
- Authorities for levying Rs three a kg cess on sugar
With the central authorities prepared to impose a Rs three cess per kg of sugar, the Items and Companies Tax (GST) Council right now authorised a gaggle of ministers to take a ultimate name on the matter. The brand new sugar cess might be over and above the prevailing levy beneath GST regime. At the moment, sugar attracts 5 per cent GST.
The choice was taken on the GST Council meet. Union Minister Arun Jaitley attended the meet by way of videoconferencing from New Delhi. After the assembly with the state finance ministers, Jaitley stated that the GST Council determined group of ministers needs to be constituted to take a ultimate name on imposition of cess to lift funds for the sugarcane growers.
The cess might be imposed on the packaged sugar offered by the sugar manufacturing corporations. The proposal to impose contemporary cess on sugar is aimed toward benefitting the cane farmers who’re reeling beneath debt burden. The sugar costs have crashed lately incurring extra losses to the sugar factories ensuing, in flip, poor fee to cane rising farmers.
The federal government hopes to lift about Rs 1,540 crore that might be used to pay the dues in direction of cane farmers who couldn’t be compensated by the loss making sugar factories. In Uttar Pradesh, Maharashtra and Karnataka, arrears price Rs 19,000 crores have to be paid to farmers by sugar factories.
In keeping with trade physique Indian Sugar Mills Affiliation (ISMA), the sugar costs have fallen by Rs 9 per kilo throughout the nation within the final 4 to 5 months. The sugar mills are operating in losses translating into large arrears in direction of the cane growers. Whole cane worth arrear was over Rs 18,000 crore throughout the nation as of March 15 this yr.