5% Sugar cess to compensate cane farmers
GST Council to take up 5% sugar cess to compensate cane farmers
Meanwhile, many countries are opposed to the idea of a separate GST service because they run counter to the principle of a common indirect tax On Friday, the GST will consider a proposal to impose a sugar tax to compensate sugarcane farmers.
The proposal by the Ministry of Consumer Affairs, Food and General Distribution of the five sugar quota will be outside the scope of CES compensation under GST, and therefore will need a separate law.
Sugis sugar proposal will be taken by the board.Cis different from CES will be compensated and will need to work independently in parliament or by text in the Finance Act.
The government may choose to proceed with this by law.
Currently, the compensation will be within the scope of the GST Act, and a handful of luxury goods and a 28% GST slap will be required to compensate states for the shortfall in revenue due to GST implementation for the first five years.
Meanwhile, many countries are opposed to the idea of a separate GST service because they run counter to the principle of a common indirect tax. States that do not produce sugar against the proposal, arguing that they will not get part of the fuss collected from the taxpayer. Sugar-producing countries such as Karnataka also strongly oppose this move.
It is expected that there will be a stormy debate on this subject with most countries against the proposal.” It is odd and the whole goal of the GST.
A government states have increased the proposed GST rate on sugar from 5 percent as an alternative to the imposition Currently on CES.
On Wednesday, the Council of Ministers approved the Financial Assistance Federation at a rate of 5.50 rupees per quintal of crushed sugar cane in the 2017-18 season for sugar factories to clear the cane farmers’ dues. The payment of 15.40 billion rupees directly to farmers will help dispose of less than a tenth of the volume of its sugar factories.
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Last month, a high-level committee led by Transport Minister Nitin Gadkari decided to consider three proposals to reduce sugarcane arrears that hit Rs 200 billion due to a record crop of more than 32 million tonnes. These included the imposition of Cess on sugar, an export subsidy linked to production and tax reduction Goods and services on ethanol from the current 18 percent.
“We may soon develop all three proposals before the cabinet,” Food Minister Ram Vilas Paswan said after a high-level meeting in which I participated. The GST board will also take up the proposal to lower the GST rate on 18 percent of ethanol from 12 to Cent. Is again the proposal of the Ministry of Food and General Distribution.
“The matter may be referred to the setup committee,” he said, adding that it is expected to also provide relief to the sector by simplifying the procedure of submitting another official.The board’s return.
The board, headed by Finance Minister Arun Jitli, may approve a “hybrid model” recommended by a ministerial committee headed by Deputy Prime Minister Bihar Social Moody where the buyer will obtain the tax credit input based on the seller’s billing load, regardless of whether I have paid the tax Already. There will be one model for making statements. There is also a proposal for a 2 percentage point discount in GST on consumers who use digital payments.