GST RATES AND CLASSIFICATION OF SERVICES
The Goods and Services Tax Act,
2017 came into force with effect from 1.7.2017 in
The Central Government on the recommendations of the 48th GST Council meeting held issued certain clarifications vide Notification No. 189/01/2023/GST dated 12.1.2023 regarding rate of tax etc as shown below.
|
Goods / Services |
Rate of GST |
|
Rab Galawat and Rab Salawat |
18% GST |
|
By-products of Milling of Dal/Pulses |
Exempt From 1.1.2023 |
|
Carbonated Beverages of Fruit Drinks of Carbonated Beverages with Fruit Juice |
28% GST And 12% Cess |
|
Snack Products manufactured through the Extrusion Process |
18% GST |
|
Sport Utility Vehicles (SUV) with engine capacity exceeding 1500 cc and length exceeding 4000 mm and ground clearance is above 170 mm |
28% GST And 22% Compensation Cess |
|
Increase of GST from 5% to 12% for the Goods specified in Notification No. 3/2017 dated 28.7.2017 (when imported) |
12% IGST |
The relevant notification is given below for ready reference:
F. No. CBIC-190354/316/2022-TRU Section-CBEC Government of India
Ministry
of Finance Department of Revenue
(Tax Research Unit)
*****
North Block, New
Delhi
Date: 13th January, 2023
To,
The Principal Chief Commissioners/
Principal Directors General,
The
Chief Commissioners/ Directors
General,
The Principal
Commissioners/ Commissioners of
Central Excise & Central Tax
Madam/ Sir,
Subject:
Clarification regarding GST rates and classification of certain goods
based on the recommendations of the GST Council in its 48th meeting held on 17th December,
2022 –reg.
Based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022, clarifications, with reference to GST levy, related to the following are
being issued through this circular:
2. Rab -classifiable
under Tariff heading 1702:
2.1 Representation
has been received seeking clarification regarding the
classification of
"Rab". It has been stated that under the U.P. Rab (Movement Control
Order), 1967, "Rab" means ‘massecuite
prepared by
concentrating sugarcane
juice
on open pan furnaces, and includes Rab Galawat
and Rab Salawat, but does not include khandsari molasses
or lauta gur.’ Although, a product of sugarcane, Rab exists in semi-solid/liquid form, and is thus not covered
under heading 1701. The Hon’ble Supreme Court in its
order in Krishi Utpadan Mandi Samiti
vs. M/s Shankar Industries and
others
[1993 SCR (1)1037] has distinguished Rab
from Molasses. Thus, Rab being distinguishable from molasses is not classifiable under heading
1703.
2.2 Accordingly,
it is hereby clarified that Rab is appropriately classifiable under heading
1702
attracting GST rate of
18%
(S. No. 11 in Schedule III of notification No.
1/2017-Central
Tax (Rate), dated the
28th June, 2017).
3. Applicability of
GST
on by-products
of milling of Dal/ Pulses such as Chilka, Khanda
and Churi/Chuni:
3.1 Representations
have been received seeking clarification regarding the applicable
GST
rate on by-products of
milling of Dal/ Pulses such as
Chilka, Khanda and Churi/Chuni.
3.2 The
GST council in its 48th meeting has recommended to fully exempt the supply of subject goods, irrespective of its end use. Hence, with effect from the 1st January, 2023, the
said goods shall be exempt under GST vide S. No. 102C of schedule of notification No. 2/2017- Central Tax
(Rate), dated 28.06.2017.
3.3 Further, as per recommendation of the GST Council, in view
of genuine doubts regarding the applicability of GST on subject goods, matters that arose during the intervening
period are hereby regularized on "as is"
basis from the date of issuance of Circular No.
179/11/2022-GST, dated the 3rd August, 2022, till the date of coming into force of the above-
said S. No. 102C and the entries relating thereto. This is in addition to the
matter regularized
on as is basis vide
para 8.6 of the
said Circular.
4. Clarification
r e gard in g ‘Carb on ated
B
everag es
of
F ru it Drin k ’
or
‘Ca rb on ated
B everages
wi th Fru it
Ju ice’:
4.1 Representations
have been received seeking clarification regarding the applicable
six- digit HS code for
‘Carbonated
Beverages
of Fruit
Drink’ or ‘Carbonated
Beverages with Fruit
Juice’.
4.2 On the basis of the recommendation of the GST council in its 45th meeting, a specific
entry has been created in notification No. 1/2017-Central Tax (Rate), dated the 28th June, 2017 and notification No. 1/2017- Compensation Cess (Rate), dated the 28th June, 2017,
vide S. No.
12B in Schedule IV and S. No. 4B in Schedule respectively, with effect from the 1st October,
2021, for goods with description
‘Carbonated Beverages of Fruit Drink’ or ‘Carbonated
Beverages with Fruit
Juice’.
4.3 It is hereby clarified that the applicable six-digit HS code for the
aforesaid goods with description
‘Carbonated Beverages of Fruit Drink’ or ‘Carbonated Beverages with Fruit Juice’
is HS 2202 99. The said goods attract GST at the rate
of 28% and Compensation
Cess at the
rate
of 12%. The S. Nos. 12B and 4B mentioned
in Para 4.2 cover all such carbonated beverages that
contain carbon dioxide, irrespective
of whether the
carbon dioxide is added as a
preservative,
additive, etc.
4.4 In order
to bring absolute
clarity, an exclusion for the
above-said goods has been provided in the entry at S. No. 48 of Schedule-II of notification No. 1/2017-Central Tax (Rate), dated 28th June,
2017, vide
notification No.
12/2022-Central Tax (Rate),
dated the 30th December, 2022.
5. Applicability of GST on Snack pellets manufactured through extrusion process
(such as
‘fryu m s’):
5.1 Representations
have been received seeking clarification regarding classification and applicable GST rate on snack pellets manufactured through the process of extrusion (such as
‘fryums’).
5.2 It is hereby
clarified
that the snack pellets (such as
‘fryums’), which are manufactured
through the process of extrusion, are appropriately classifiable under tariff item 1905 90 30,
which covers goods
with description ‘Extruded or expanded products, savoury
or salted’, and thereby attract GST at the rate of 18% vide S. No. 16 of Schedule-III of notification No. 1/2017- Central Tax
(Rate), dated the 28th June, 2017.
6. Applicability
of Compensation cess on
Sports Utility Vehicles
(SUVs):
6.1 Representations have
been received seeking clarification about the specifications of motor
vehicles, which attract
compensation cess
at the rate of 22% vide entry at
S. No. 52B of notification
No. 01/2017 Compensation Cess
(Rate), dated 28th June, 2017.
6.2 In this
regard,
it is clarified that Compensation Cess at the
rate of 22% is applicable
on Motor vehicles, falling under heading 8703, which satisfy all four specifications, namely: - these
are popularly known as SUVs; the engine capacity exceeds 1,500 cc; the length exceeds
4,000
mm; and the ground clearance is
170 mm and above.
6.3 This
clarification is confined to and is applicable only to Sports Utility Vehicles
(SUVs).
7. Applicability of IGST rate on
goods specified under notification No. 3/2017- Integrated Tax (Rate):
7.1 Representations
have been received expressing doubts regarding the applicable IGST
rate
on goods specified in the list annexed to notification No. 3/2017-Integrated Tax (Rate), dated
the 28th June, 2017.
7.2 On the basis of
the
recommendation of the GST Council in its 47th Meeting, held in
June 2022, the IGST rate has been increased from 5% to 12% on goods,
falling under any
Chapter, specified in the list annexed to the
notification No. 3/2017-Integrated Tax (Rate), dated
the 28th June, 2017, when imported for the specified purpose (like
Petroleum operations/Coal bed methane
operations) and subject to the relevant conditions prescribed in
the said notification. However, some goods specified in the list annexed to notification No.
3/2017-Integrated Tax
(Rate), dated the 28th June,
2017, are also
eligible for a lower schedule rate of 5% by virtue of their
entry in Schedule I of notification No. 1/2017-Integrated Tax
(Rate), dated the 28th
June, 2017.
7.3 Accordingly,
it is hereby clarified
that on goods specified in the list annexed
to the notification No.
3/2017-Integrated Tax (Rate), dated the 28th June, 2017, which are eligible
for IGST rate
of 12% under the said notification and are also eligible
for the
benefit of lower
rate
under Schedule I of the notification No. 1/2017-Integrated Tax (Rate), dated the 28th June,
2017
or any other IGST rate notification, the importer can
claim the benefit of
the lower rate.
8. Difficulty,
if any, in the implementation of this circular may be brought to the notice of
the Board.
Yours faithfully,
(Dibyalok)
Technical Officer, TRU-I