Background:
Earlier, the 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to reduce the GST rates on various goods.
Notification:
Now, the CBIC vide Notification No. 09/2023-Central Tax (Rate) dated July 26, 2023 has issued amendments in Notification No. 01/2017- Central Tax (Rate) dated June 28, 2017 to implement the decisions of the 50th GST Council Meeting.
The Rates for Uncooked, unfried & extruded snack palettes, fish soluble paste, LD slag (at par with blast furnace slag) and imitation zari thread as recommended by the GST Council are notified.
In this Notification, there are various rate changes which are summarised as follows:
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Schedule 2.5% |
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(i) Un-fried or un-cooked snack pellets, by whatever name called, manufactured through the process of extrusion. |
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(ii) Fish Soluble Paste |
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(iii) Linz-Donawitz (LD) Slag |
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(iv) Imitation zari thread or yarn known by any name in trade parlance |
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Schedule 6% |
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Metalized Yarn like gold and silver thread |
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Schedule 9% |
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(i) Toasted bread and similar toasted products. |
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(ii) Slag, dross and other waste from the manufacture of iron or steel. |
Impact of the Notification:
- The GST Council decided to reduce the rate on uncooked/unfried snack pellets by whatever name called, manufactured through the process of extrusion, to 5%.
- The GST Council had decided to reduce the GST rate on fish soluble paste from 18% to 5%.
- It has been decided to reduce the GST rate on LD slag from 18% to 5% to encourage better utilisation of this product and for the protection of environment.
- The GST Council decided to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12% to 5%. Real Zari thread of gold or silver was already under 5%.
However, the GST Council also decided to regularise payment of GST on uncooked /unfried snack pellets during the past period on “as is basis”. This action has not been implemented yet, and it is possible that we may anticipate a Circular on the matter in the near future.
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://egazette.gov.in/WriteReadData/2023/247627.pdf
The IGST (Rate) Notification: https://egazette.gov.in/WriteReadData/2023/247627.pdf
The UTGST (Rate) Notification: https://egazette.gov.in/WriteReadData/2023/247627.pdf
(Author can be reached at info@a2ztaxcorp.com)
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