Govt says proposed GST rates on sugar, tea lesser than current taxes.

The proposed GST rates on sugar, tea, coffee, and milk powder will be lesser than the prevailing taxes. The GST Council has kept sugar under the 5% tax slab. Sugar currently attracts a central excise duty of 71 rupees per 100 kg and a sugar cess of 124 rupees per 100 kg, which translates to a rate of over 6%. The existing tax rate on the sweetener would work out to be more than 8% if central sales tax, octroi and entry tax is included.