GoM to consult Law and Food ministry on sugar cess under GST
New Delhi: A ministerial panel on imposing cess on sugar on Monday decided to seek law ministry opinion on the legality of such a levy.
The panel, chaired by Assam Finance Minister Himanta Biswa Sarma, will also seek a report from the food ministry on the final utilisation of the proceeds from levy of sugar cess.
"The GoM has met on Monday. First question is whether council at all has the power to impose cess, we have decided to refer that to the Law ministry," Sarma told reporters here after the first meeting of the panel.
The Group of Ministers (GoM) was constituted on May 4 to look into the feasibility of implementing the food ministry proposal of levying cess on sugar to benefit sugar cane farmers.
The food ministry in its report to the GoM will detail out how it is proposing to disburse the proceeds from levy of cess.
The GoM expects the law ministry as well as the food ministry to give their views by the end of this month.
The GoM will meet next on June 3 in Mumbai.
"We must first know whether legally we have the power or not to levy cess.... if the law Ministry says there is power, Council will exercise that power when it serves public interest," Sarma said.