CBIC issues Clarification on Rate Change and Classification Notifications as per GST Council Recommendations
Finance Ministry Clarifies Tax Rates and Classifications in Latest Circular
Following the recommendations of the Goods and Services Tax Council in its 53rd meeting held on 22nd June 2024, several clarifications regarding GST rates and classifications have been issued by the Tax Research Unit of CBIC (formerly CBEC). These clarifications address various issues and provide specific guidance on applicable Goods and Services Tax Rates and classification. The key...
Following the recommendations of the Goods and Services Tax Council in its 53rd meeting held on 22nd June 2024, several clarifications regarding GST rates and classifications have been issued by the Tax Research Unit of CBIC (formerly CBEC). These clarifications address various issues and provide specific guidance on applicable Goods and Services Tax Rates and classification.
The key points of the circular are summarized below:
1. GST Rate on Solar Cookers
The GST Council has clarified the classification and applicable GST rate for solar cookers that operate on dual energy sources. Solar cookers utilising both solar energy and grid electricity fall under heading 8516 and are subject to a 12% GST rate as per Sl. No. 201A of Schedule II of notification No. 1/2017-Central Tax (Rate) dated 28th June 2017.
2. GST Rate on Fire Water Sprinklers
Clarifications were sought regarding the GST rate on fire water sprinklers. The Council confirmed that all types of sprinklers, including fire water sprinklers, attract a 12% GST rate as per Sl. No. 195B of Schedule II of notification No. 1/2017-Central Tax (Rate) dated 28th June 2017. Additionally, issues for the past period are regularised on an "as is where is" basis due to prevailing genuine doubts.
3. GST Rate on Parts of Poultry-Keeping Machinery
Clarifications on the GST rate for parts of poultry-keeping machinery were also addressed. These parts are classified under tariff item 8436 91 00 and attract a 12% GST rate as per Sl. No. 199 of Schedule II of notification No. 1/2017-Central Tax (Rate) dated 28th June 2017. The relevant entry has been amended to specifically include 'parts' of poultry-keeping machinery. Past issues are also regularised on an "as is where is" basis.
4. Scope of 'Pre-Packaged and Labelled' for Agricultural Produce
The Council provided clarity on the expression 'pre-packaged and labelled' for the levy of GST on agricultural farm produce. The definition has been amended to exclude packages containing more than 25 kilograms or 25 litres from this scope, thereby exempting such supplies from the 5% GST levy. Past issues are regularised on an "as is where is" basis.
5. Supplies to or by Government Agencies
Clarifications were issued regarding supplies of pulses and cereals by government agencies. Supplies made between 01.07.2017 and 17.07.2022 are regularised on an "as is where is" basis under specific conditions. Suppliers must furnish a certificate from an appropriate government officer and reverse any availed Input Tax Credit within 180 days to benefit from this regularisation.
To Read the full text of the Order CLICK HERE
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