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GST Rate & Classification of Rab: Circular-189-01-2023-CGST

It has been stated that under the U.P. Rab (Movement ControlOrder), 1967, "Rab" means ‘massecuite prepared by concentrating sugarcanejuice on open pan furnaces, and includesRab Galawat and Rab Salawat,but does not include khandsari molasses or lauta gur.’Although, a product of sugarcane, Rab exists in semi-solid/liquid form, and is thus not coveredunder heading 1701. The Hon’ble Supreme Court in its order in Krishi Utpadan Mandi Samiti vs. M/s ShankarIndustries and others[1993 SCR (1)1037]has distinguished Rab from Molasses.Thus, Rab being distinguishable from molasses is not classifiable under heading 1703.

Accordingly, it is hereby clarified by GST Council in cir-189-01-2023-cgst that Rab is appropriately classifiable under heading 1702 attracting GST rate of 18% (S. No. 11 in Schedule III of notification No. 1/2017-Central Tax (Rate),dated the 28th June, 2017)

Based on the recommendation of the GST councilin its 49th meeting,held on 18th February,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


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