CBIC issues clarification regarding GST rates and classification of certain goods

Circular No. 189/01/2023-GST dated 13th January, 2023

The CBIC has issued clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022. The key clarifications issued are as follows:

a. Rab is appropriately classifiable under heading 1702 attracting GST rate of 18%

b. No GST on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni w.e.f January 1st, 2023

c. ‘Carbonated Beverages of Fruit Drink’ or ‘Carbonated Beverages with Fruit Juice’ would fall under HSN 2202 99 and GST would be levied at the rate of 28% and Compensation Cess at the rate of 12%.

d. Snack pellets (such as ‘fryums’), which are manufactured through the process of extrusion, are appropriately classifiable under tariff item 1905 90 30 and taxable at 18%.

e. Compensation Cess at the rate of 22% is applicable on Motor vehicles, falling under heading 8703, which satisfy all four specifications i.e. these are popularly known as SUVs; the engine capacity exceeds 1,500 cc; the length exceeds 4,000 mm; and the ground clearance is 170 mm and above.

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