Subject: Clarification regarding GST rate and classification of ‘Rab’ based on the recommendation of the GST Council in its 49thmeeting held on 18thFebruary, 2023 –reg. Based on the recommendation of the GST council in its 49thmeeting, held on 18thFebruary, 2023.
With effect from the 1stMarch, 2023, 5% GST rate has been notified on Rab, when sold in pre-packaged and labelled, and Nil GST, when sold in other than pre-packaged and labelled.2.Further, as per the recommendation of the GST Council in the above-said meeting, in view of the prevailing divergent interpretations and genuine doubts regarding the applicability of GST rate on Rab, the issue for past period is hereby regularized on “as is” basis.3.Difficulty if any, in the implementation of this circular may be brought to the notice of the Board.
(Circular No. 191/03/2023-GSTF. No. CBIC-190354/21/2023)
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What is “Rab”
Rab is a liquid jaggery basically used in food and beverages industry to use as sweetener to some kind of beverages it is also used in liquor industry such Rum.
Whether Rab is subject to GST
Jaggery in liquid form (RAB) is subject to GST if it is sold as pre-packaging and labelled.
What is rate of GST on RAB
As per the Circular No Circular No. 191/03/2023-GSTF. No. CBIC-190354/21/2023 issued by GST Council Rab will be subject to GST at the rate of 5% from 1 march 2023 and onwards.
When it is sold in other form where pre-packaging and labelled is not done then Nil rate of GST is charged on “Rab”
