NEW DELHI: Protest by way of some states, together with Kerala, West Bengal and Andhra Pradesh, prompted the GST Council to order a overview of the plan to levy a cess on sugar to “help” sugarcane growers as they complained that the transfer would most effective benefit Uttar Pradesh, Maharashtra and poll-bound Karnataka, whilst discarding the basic concept of the new regime that desirous about casting off all further levies. The cess would have helped govt lift Rs 6,700 crore.
During discussions at the cess, which stretched for over two hours, these states, with beef up from Tamil Nadu, Delhi and Pondicherry, argued that imposition of a cess on sugar can even make different states similar to Kerala, West Bengal and Punjab demand a identical benefit for rubber, jute and foodgrains. “There shall be no finish and will defeat the very goal of GST,” stated a supply, including that one of the vital finance ministry officers were additionally sympathetic to this argument. While introducing GST, the Centre and the states determined to abolish all cesses and surcharges rather than repayment cess (covering luxurious and sin items) for a duration of 5 years.
FM Arun Jaitley stated after the meeting that cane growers were in deep distress as the cost of sugar production is over Rs 35 per kg, whilst the market price of sugar is around Rs 26-28 a kg. The cess on sugar was proposed to boost money to compensate farmers for a loss due to surplus production.
The states opposing the cess prompt that UP and Maharashtra, which can be grappling with the problem, will have to supply budgetary beef up as the transfer is most effective going to learn sugar generators in their jurisdictions, despite the fact that the cess shall be paid by way of customers across the nation to help farmers.
A panel underneath Assam finance minister Himanta Biswa Sarma, in conjunction with ministers from UP, Maharashtra, Tamil Nadu and Kerala, will take care of factor of levy of cess on sugar and reduction of GST on ethanol and is predicted to submit its record in a fortnight.
Jaitley stated that the discussions have thrown up several new sides. “How are such contingencies to be addressed in the GST regime, are they to be addressed by way of imposition of cess or are they to be addressed by way of temporarily expanding the tax or by way of some alternative way of earnings elevating?”
The ministerial panel would make a advice to the council at the avenues to boost earnings to meet contingencies of this type where the cost of commodity is much higher than its selling price.
During discussions at the cess, which stretched for over two hours, these states, with beef up from Tamil Nadu, Delhi and Pondicherry, argued that imposition of a cess on sugar can even make different states similar to Kerala, West Bengal and Punjab demand a identical benefit for rubber, jute and foodgrains. “There shall be no finish and will defeat the very goal of GST,” stated a supply, including that one of the vital finance ministry officers were additionally sympathetic to this argument. While introducing GST, the Centre and the states determined to abolish all cesses and surcharges rather than repayment cess (covering luxurious and sin items) for a duration of 5 years.
FM Arun Jaitley stated after the meeting that cane growers were in deep distress as the cost of sugar production is over Rs 35 per kg, whilst the market price of sugar is around Rs 26-28 a kg. The cess on sugar was proposed to boost money to compensate farmers for a loss due to surplus production.
The states opposing the cess prompt that UP and Maharashtra, which can be grappling with the problem, will have to supply budgetary beef up as the transfer is most effective going to learn sugar generators in their jurisdictions, despite the fact that the cess shall be paid by way of customers across the nation to help farmers.
A panel underneath Assam finance minister Himanta Biswa Sarma, in conjunction with ministers from UP, Maharashtra, Tamil Nadu and Kerala, will take care of factor of levy of cess on sugar and reduction of GST on ethanol and is predicted to submit its record in a fortnight.
Jaitley stated that the discussions have thrown up several new sides. “How are such contingencies to be addressed in the GST regime, are they to be addressed by way of imposition of cess or are they to be addressed by way of temporarily expanding the tax or by way of some alternative way of earnings elevating?”
The ministerial panel would make a advice to the council at the avenues to boost earnings to meet contingencies of this type where the cost of commodity is much higher than its selling price.
GST Council puts up sugar cess for review
![GST Council puts up sugar cess for review]()
Reviewed by Kailash
on
May 05, 2018
Rating:
