GST council has power to impose Sugar Cess : says Union Law Ministry

By | May 24, 2018
(Last Updated On: May 24, 2018)

GST council has power to impose Sugar Cess

Union law ministry on Thursday ( 24.05.2018)  said the Goods and Services Tax (GST) council under Article 279 (A) of constitution has powers to recommend cess for any commodity under GST.

The ministry submitted its view on sugar cess to GST GoM  (group of ministers) headed by Assam finance minister Hemanta Bishwa Sharma.

The GoM on June 3 will deliberate the view of law ministry and will decide quantum of sugar cess to be levied, a government official said.

It will also work out mechanism on distribution of sugar cess, said the official.

Earlier this month, GST council decided to refer sugar cess issue to a five-member committee of state ministers after many states expressed concern over the fundamental principle of cess.

Apart from Hemanta Biswa Sharma, other members include Rajesh Agarwal, finance minister, Uttar Pradesh, Maharashtra finance minister Sudhir Mungatiwar, D Jayakumar, minister for personnel and administrative reforms, Tamil Nadu, and Kerala finance minister T M Thomas Isaac.

The central government proposed to impose Rs 3 cess per kg of sugar to help the mills to clear the due owed to the sugar cane farmers.

According to the reports, only Uttar Pradesh and Maharashtra supported sugar cess in the council.

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