The Goods and Services Tax (GST) Council has decided to clear the entire due on the pending balance of the GST compensation to the states.
Addressing the media after chairing the 49th meeting of the GST Council here, Union Finance Minister Nirmala Sitharaman said that the pending balance of the GST compensation to the tune of Rs 16,982 crore for June 2022 will be cleared.
She added that although this amount was not actually available in the compensation fund as of today, the Centre has decided to release this amount from its own resources and the same amount would be recouped from the future compensation cess collection.
Sitharaman also said that with this release, the Centre would clear the entire provisionally admissible compensation cess dues for five years as envisaged in the GST (Compensation to States) Act 2017.
She also announced a decision to lower the GST rates on Raab or liquid jaggery from 18 per cent to nil if it was loose. If it was pre-packaged and labelled, it would attract a GST of five per cent.
She said the GST rate on Pencil Sharpeners has been reduced to 12 per cent from the existing 18 per cent while on tags tracking devices or data loggers which were affixed on durable containers, it has been reduced from 18 per cent to nil, subject to some conditions.