GST Council to Reduce GST on Liquid Jaggery, Pencil Sharpeners, Tracking Devices, Says FM Sitharaman

The GST Council agreed to reduce the GST rate on pencil sharpeners from 18 per cent to 12 per cent and also decided to reduce GST rate on liquid jaggery from 18 per cent to nil or 5 per cent.

During the GST Council meeting, the finance minister talked about setting up appellate tribunals and curbing tax evasion in pan masala and gutkha businesses. Talking about the appellate tribunals, FM Sitharaman said the GoM report has been agreed to and slight modifications are required in the report.

“GST on pencil sharpeners has come down from 18% to 12%. Also, there is a reduction in GST on tags tracking devices or data loggers which are affixed on durable containers, from 18% to nil, subject to some conditions,” Sitharaman said during a press conference.

She said raab is a kind of liquid jaggery which is so typical to Uttar Pradesh and other jaggery-producing states and the council is 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%,” she added.

“We have announced today that the entire due on the pending balance of the GST compensation will be cleared as of today. In other words, the entire pending balance of the GST compensation – a total of Rs 16,982 crores for June – will be cleared,” Sitharaman said.

She said even as the amount is not really available in the compensation fund as of today, the council decided to release the amount from own resources and the same amount will be recouped from the future compensation cess collection.

“With this release, the Centre would clear the entire provisionally admissible compensation cess dues for 5 years as envisaged in the GST (Compensation to States) Act, 2017,” Sitharaman added.