Jaggery, khandsari exempted from GST

LUCKNOW:The Uttar Pradesh government on Thursday announced to exempt jaggery (gur) and khandsari from Goods and Services Tax (GST).

In another major policy decision, the Yogi government also announced to reduce mandatory minimum radial distance limit from 15 km to 8 km from a sugarcane mill for setting up of a khandsari unit. This will encourage rural folks to set up more khandsari units. It will make khandsari business a more profitable business venture and those associated with it will be able to compete with sugar mills.

Khandsari sugar is raw unprocessed sugar that contains minerals and fibre and no chemicals. It is unrefined raw white sugar made from thickened sugar cane syrup.

Suresh Rana, minister (independent charge), sugar development, said , “In order to promote jaggery and khandsari units, the government has decided to free them from the GST.”

“After removal of word ‘gur ’ from the UP Sugarcane control order, 1966 and the UP Khandsari licence order, 1967, all gur manufacturing crushers and power crushers will be free from the provisions of license, GST and development commission,” said Rana.

“This will help in all around development of gur industry and sugarcane farmers,” he added .

The Yogi government has taken the decision to boost khandsari and jaggery manufacturing units in rural areas. This decision will also help generate employment for rural youths.

According to the minister, this step will also help in timely disposal of excess sugarcane available with farmers due to increased production.

At present, there are 157 khandsari units in the state.