GST will make sugar cheaper in Tamil Nadu, Andhra Pradesh, no impact in other states


PUNE: The 5 per cent GST on sugar will make sugar cheaper in Tamil Nadu and Andhra Pradesh, while there won’t be any extra burden on consumers in the rest of the country as the new rate of taxation is almost similar to the current rate of taxation, which is about 5.5%.

According to ISMA, consumers from Tamil Nadu and Andhra Pradesh, the two states which currently have VAT on sugar, will have to pay less once GST is introduced. While, consumers from the rest of the country will not have to bear any extra as the current rate of taxation on sugar works out to be about 5.5%.

T Sarita Reddy, president, Indian Sugar Mills Association (ISMA) said, “We are happy with the decision to impost 5% GST on sugar and it was an expected decision.”

Presently, sugar mills pay Rs 71/quintal as excise duty on sugar and Rs 124/quintal as the sugar cess and education cess. At Rs 3600/quintal sugar price, the current tax is about 5.5%.

However, though millers are happy, sugar traders wanted sugar to be included in 0% tax bracket. “We wanted sugar to be exempted from taxation under GST,” said Ashok Jain, president, Bombay Sugar Merchants Association.


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