Background:
The GST Council’s 49th meeting was held in Delhi on February 18, 2023 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendation to reduce the GST rates on ‘Rab’ from 18% to 5% if sold prepackaged and on ‘Pencil Sharpener’ from 18% to 12%.
Notification:
Now, the CBIC vide Notification No. 3/2023-Central Tax (Rate) dated February 28, 2023 has issued amendments in Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”), in order to align with recommendations of the 49th GST Council Meeting held on February 18, 2023, w.e.f. March 01, 2023, in a following manner:
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Schedule I – 2.5% |
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| SI. No. |
Chapter / Heading / Sub-Heading / Tariff Item |
Existing Entry |
Revised Entry |
|
91A |
1701 or 1702 |
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled |
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labelled |
|
Schedule II – 6% |
|||
| 186A | 8214 |
Pencil sharpeners |
|
|
Schedule III – 9% |
|||
| 302A | 8214 |
Other articles of cutlery (for example, hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives,); manicure or pedicure sets and instruments (including nail files) |
Other articles of cutlery (for example, hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives,); manicure or pedicure sets and instruments (including nail files) [other than pencil sharpeners] |
Similar Notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
The CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009644/ENG/Notifications
The IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009648/ENG/Notifications
The UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009652/ENG/Notifications