The CBIC has issued Circular No. 191/03/2023-GST dated 27.03.2023, regarding clarification of GST rate and classification of ‘Rab' based on the recommendation of the GST Council in its 49th meeting held on 18th February, 2023.

The CBIC on recommendation of the GST Council in its 49th meeting, has notified that 5% GST rate on Rab (when sold pre-packaged and labelled) and Nil GST rate (when sold other than pre-packaged and labelled) vide Notification No. 03/2023-Central Tax (Rate) and 04/2023- Central Tax (Rate) dated 28.02.2023 respectively. 

Further, as per the recommendation of the GST Council in the above-said meeting, in view of the prevailing divergent interpretations and genuine doubts regarding the applicability of GST rate on Rab, the issue for past period is hereby regularized on “as is” basis. 

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