Finance Minister Nirmala Sitharaman on Saturday announced that the GST Council had given its approval to clear Rs 16,982 crore of balance of compensation to States. The council also reduced the GST on liquid jaggery, pencil sharpeners and certain tracking devices

The proposal to reduce GST on cement has not come to the fitment committee yet.

“We have announced today that the entire due on the pending balance of the GST compensation will be cleared as of today.... In other words, the entire pending balance of the GST compensation – a total of Rs 16,982 crore for June – will be cleared,” the Union minister said.

The council approved the reduction of GST rate on rab from 18 per cent to nil or 5 per cent. Rab is a kind of liquid jaggery which is so typical to Uttar Pradesh and other jaggery-producing States. The rate is nil if it is loose. If it is pre-packaged and labelled, it will be 5 per cent.

A reduction in GST on tags, tracking devices or data loggers, which are affixed on durable containers, from 18 per cent to nil, subject to some conditions, was also announced. The GST on pencil sharpeners has been reduced to 12 from 18 per cent.

The GST Council’s decision on GST Appellate Tribunal was accepted with a change in language. The modification in the draft will be circulated in the next few days.

The council has recommended rationalisation of penalties for late filing of annual GST returns.