Govt notifies Reduction of GST Rate of Goods to 5% [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) vide notification no. No. 09/2023- Central Tax (Rate), No. 09/2023-Integrated Tax (Rate) and No. 09/2023-Union Territory Tax (Rate) issued on 26th July 2023 has notified the reduction of Goods and Services Tax (GST) rate of goods to 5%.

The goods includes Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion, Fish soluble paste, Linz-Donawitz (LD) Slag and Imitation zari thread or yarn known by any name in trade parlance. The same was recommended by the 50th GST Council meeting.

The GST rate has been reduced to 5% (2.5% -CGST and 2.5% SGST). And the Integrated tax rate is 5%.

Central Tax (Rate) -

In schedule 2.5%

New entries of 99B, 108A, 156B and 218AA have been inserted right after  S. No. 99A, S. No. 108, S. No. 156A and S. No. 218A respectively.

1. 99B - Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion
2. 108A - Fish soluble paste
3. 156B - Linz-Donawitz (LD) Slag
4. 218AA- Imitation zari thread or yarn known by any name in trade parlance

In Schedule II–6%, against S. No. 137, for the entry in column (3), the entry “Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal, other than- (i) real zari thread (gold) and silver thread combined with textile thread (ii) imitation zari thread or yarn known by any name in trade parlance” shall be substituted;

In Schedule III–9%,

(i) against S. No. 16, in column (3), for the words “toasted bread and similar toasted products”, the words “toasted bread and similar toasted products, un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion” shall be substituted;

(ii) against S. No. 28, for the entry in column (3), the entry “Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel, other than Linz-Donawitz (LD) slag” shall be substituted;

The amendment to the Union Territory Tax rate is similar to the Central Tax rate.

Integrated Tax (Rate)

In schedule 5%

New entries of 99B, 108A, 156B and 218AA have been inserted right after  S. No. 99A, S. No. 108, S. No. 156A and S. No. 218A respectively.

1. 99B - Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion
2. 108A - Fish soluble paste
3. 156B - Linz-Donawitz (LD) Slag
4. 218AA- Imitation zari thread or yarn known by any name in trade parlance

In Schedule II–12%, against S. No. 137, for the entry in column (3), the entry “Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal, other than- (i) real zari thread (gold) and silver thread combined with textile thread (ii) imitation zari thread or yarn known by any name in trade parlance” shall be substituted;

In Schedule III–18%,

(i) against S. No. 16, in column (3), for the words “toasted bread and similar toasted products”, the words “toasted bread and similar toasted products, un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion” shall be substituted;

(ii) against S. No. 28, for the entry in column (3), the entry “Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel, other than Linz-Donawitz (LD) slag”

The notification shall come into force on 27th July 2023.

To Read the full text of the Order CLICK HERE

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