The CBIC issued Notification No. 01/2024-Central Tax (Rate) on January 3, 2024, to amend the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This amendment, authorized under sections 9(1) and 15(5) of the CGST Act, brings modifications to base Notification No. 1/2017-Central Tax Rate dated June 28, 2017 (“the Goods Rate Notification”).
According to the notification, a 2.5% CGST rate has been levied on LPG (for non-automotive purposes) conforming to the standard IS 4576, falling under tariff item 2711 19 10. The effective GST rate for this item will now be 5%, comprising 2.5% CGST and 2.5% SGST.
The specific amendment pertains to Schedule I – 2.5% of the said notification.
There are two key changes:
(i) against S. No. 165, in column (2), for the entry, the entry “2711 12 00, 2711 13 00, 2711 19 10” shall be substituted;
(ii) against S. No. 165A, in column (2), for the entry, the entry “2711 12 00, 2711 13 00, 2711 19 10” shall be substituted;
The notification declares that these changes will be effective from January 4, 2024.
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”).
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009974/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009975/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009976/ENG/Notifications