The GST Council, in its 27th meeting held on 4 May 2018, discussed key proposals relating to promotion of digital transactions and measures to address challenges faced by the sugar sector. To encourage a move towards a less-cash economy, the Council deliberated on a proposal to provide a GST rate concession on business-to-consumer (B2C) supplies where payments are made through cheque or digital modes. The proposed incentive involved a reduction of up to 2 percent in GST rates, subject to a maximum benefit of Rs. 100 per transaction, for supplies attracting a GST rate of 3 percent or more. After detailed discussions, the Council recommended the constitution of a Group of Ministers (GoM) from State Governments to examine the proposal further and submit its recommendations, taking into account the views expressed by members during the meeting. Separately, the Council also considered issues relating to the sugar sector in light of record sugar production, falling market prices, and the resulting accumulation of sugarcane arrears. Proposals relating to the imposition of a sugar cess over and above the existing 5 percent GST on sugar, as well as reduction in the GST rate on ethanol, were discussed in detail. To evaluate these matters comprehensively, the Council recommended setting up another Group of Ministers from State Governments to study the proposals and submit its recommendations within a short timeframe. These discussions reflected the Council’s consultative approach in addressing sector-specific concerns while balancing revenue considerations and broader economic objectives.