Clarification regarding GST rate and classification of ‘Rab’ based on the recommendation of the GST Council in its 49th meeting held on 18th February 2023 –reg

Circular No.: 191/03/2023-GST
Date of Circular: 27th March 2023
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 9: Levy and collection of GST
  • Section 168(1): Power to issue instructions
• Relevant Notification: Based on recommendation of GST Council in its 49th meeting
• Rate Notification: GST rate changes notified effective from 01.03.2023

Summary of Clarifications Provided:

1. GST Rate and Classification of ‘Rab’:
   Pursuant to the 49th GST Council meeting held on 18th February 2023, the CBIC clarified that from 1st March 2023, the GST rate on ‘Rab’ (a semi-solid product obtained from sugarcane juice concentration) shall be:

• 5% GST when sold in pre-packaged and labelled form, and
• Nil (0%) GST when sold other than pre-packaged and labelled.

2. Regularization of Past Practice on ‘Rab’:
   Considering the prevailing divergent interpretations and genuine doubts regarding the classification and applicable GST rate on ‘Rab’ in earlier periods, the CBIC has decided to regularize the past practice “as is”, thereby avoiding any retrospective tax demands or disputes.

Source: Circular No.: 191/03/2023-GST