New Delhi: The government on Friday set up two separate groups of ministers (GoMs) to give recommendations on imposition of a cess on sugar and incentivising digital payments in the GST regime.
The two groups of state ministers were formed following the 27th GST Council meeting held earlier in the day which discussed the two issues but deferred any decision on the same.
The GoM to consider the issues relating to incentivising digital payments will be headed by Bihar Finance Minister Sushil Modi, an official statement said.
Its other members include Gujarat Deputy Chief Minister Nitinbhai Patel, Haryana Excise and Taxation Minister Capt. Abhimanyu, West Bengal Finance Minister Amit Mitra and Punjab Finance Minister Manpreet Singh Badal.
The GoM to consider issues relating to imposition of cess on sugar under GST will be headed by Assam Finance Minister Himanta Biswa Sarma and its other members include Uttar Pradesh Finance Minister Rajesh Agrawal, Maharashtra Finance Minister Sudhir Mungatiwar, Tamil Nadu's Personnel and Administrative Reforms Minister D. Jayakumar, and Kerala Finance Minister T.M. Thomas Isaac.
Both the GoMs will submit their reports within 15 days, the statement said.
Earlier in the day, the GST Council detailed discussions on the proposal to impose a cess on sugar over and above the five per cent GST considering the sugarcane farmers were in distress with the cost of producing sugar being significantly higher than its market price.
After the meeting, Union Finance Minister Arun Jaitley announced that the Council had decided to set up a group of five ministers within two days to make a recommendation on ways to meet such contingencies where the cost of a commodity is higher than its selling price.
"The committee will examine how these contingencies are to be addressed by the GST regime. Its constitution will be announced in the next two days," he said.
In the meeting, it was also decided to form a separate group of five ministers to consider and give recommendations on a two per cent concession, subject to a ceiling of Rs 100 per transaction, to consumers if they pay through digital modes.