Goods and Service Tax (GST) on liquid jaggery, popularly known as raab, has been reduced to nil or 5 per cent. During the 49th meeting of the GST Council, Union Finance Minister Nirmala Sitharaman informed that GST on ‘Raab’ has been reduced from 18% to nil if it is loose. However, a GST of 5 per cent will be levied on it if it is pre-packaged and labelled packets.
“Raab is a kind of liquid jaggery that is so typical to Uttar Pradesh and other jaggery-producing states. We are 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%,” Sitharaman said.
What is Raab?
Raab, a warm healthy porridge-like drink made from flour, jaggery, and ghee, is served to strengthen the immune system of a new mother or someone who is low on energy. It is considered one of the home remedies for colds and coughs. It gives a soothing effect to the throat when you drink it hot.
It is also given to people who are recovering after illness to recover their strength and build up their stamina.
Apart from Raab, GST has been reduced on pencil sharpeners and certain tracking devices, etc. The minister also informed that reports of the GoM (Group of Ministers) on checking tax evasion by pan masala and gutkha industry, and on Goods and Services Tax Appellate Tribunals (GSTATs), have been taken on board.
She further said all the GST compensation dues will be cleared, including Rs 16,982 crore for the month of June. The finance minister further said the GST Council has decided to rationalise late fees on filing of annual GST returns after the due date.
Finance ministers of states and UTs (with legislature) and senior officials of Union Government and states participated in the meeting.
(With inputs from PTI)
