GST Rate Clarification for ‘Rab’: 5% for Pre-packaged and Labeled, Nil for Other Forms; Past Issues Regularised

The Ministry of Finance has issued a circular clarifying the GST rate and classification for ‘Rab,’ following the 49th GST Council meeting held on 18th February 2023. Effective from 1st March 2023, a 5% GST rate will apply to Rab sold in pre-packaged and labeled form, while Rab sold in other forms will be subject to a nil GST rate. The circular also addresses past ambiguities by regularizing the issue on an “as is” basis.

See Circular No. 191/03/2023-GST dated 27.03.2023