GST panel examines alternatives on sugar cess; here's all you need to know

While GST is a key revenue generator, it should not be used as a tool to alleviate sector/commodity related issues, as that would lead to significant changes in the GST structure

The Group of Ministers (GoM) to look at imposition of a contentious sugar cess under the goods and services tax (GST) regime has mulled on four ways in this regard. 

One of these is a rate hike on sugar, which it considerd last Sunday, to raise revenue for helping cane farmers. 

It is awaiting the Union attorney general's opinion on whether such a cess could be levied within the GST structure. 

The law ministry thinks it could. Beside imposing a separate sugar cess, another way is to raise the GST rate for sugar to 12 per cent, from the present