GST rates on Refined Beet and Cane Sugar
The CBIC issued Circular No. 52/26/2018-GST dated 09th August, 2018 clarifying on various issues including GST classification and rates on refined Beet and Cane sugar. The CBIC on this issue clarifies as below:
- Doubts have been raised regarding GST rate applicable on refined beet and cane sugar. Vide Sl. No. 91 of schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017, 5% GST rate has been prescribed on all kinds of beet and cane sugar falling under heading 1701.
- Doubts seems to have arisen in view of Sl. No. 32A of the Schedule II of notification no. 1/2017- central tax (rate) dated 28.06.2017, which prescribes 12% GST rate on “All goods, falling under tariff items 1701 91 and 1701 99 including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those attract 5% or Nil GST)”.
- It is clarified that by virtue of exclusion in Sl. No. 32A, any sugar that falls under 5% category [at the said S.No. 91 of schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017] gets excluded from the Sl. No. 32A of Schedule II. As all kinds of beet and cane sugar falling under heading 1701 are covered by the said entry at Sl. No. 91 of Schedule I, these would get excluded from S. No. 32A of Schedule II, and thus would attract GST @ 5%.
- Accordingly, it is clarified that beet and cane sugar, including refined beet and cane sugar, will fall under heading 1701 and attract 5% GST rate.
Source: CBIC Circular No. 52/26/2018- GST
