GST Council to take up 5% sugar cess to compensate cane farmers

Meanwhile, many states are opposed to the idea of a separate cess under the GST as it goes against the principle of the uniform indirect tax

The GST Council will at its meeting on Friday consider a proposal to impose a sugar cess to compensate cane farmers. 

The proposal by the ministry of consumer affairs, food and public distribution for a 5 per cent sugar cess will be outside the purview of the compensation cess under the goods and services tax, and hence will need a separate law.

“The sugar cess proposal will be taken up by the council. It will be a different cess from the compensation cess and will need a separate act of Parliament or by way of a provision in the Finance Act,”