This circular provides clarity on the GST rate applicable to Rab. Based on the GST Council’s recommendation in its 49th meeting, Rab attracts 5% GST when sold in pre-packaged and labelled form, and Nil GST when sold otherwise, effective 1 March 2023.

It also notes that because there were divergent interpretations in the past, the issue for earlier periods is regularized on an “as is” basis, meaning no disputes are to be raised for past classifications.