GST Circular No 200/2023
Clarifications with reference to GST levy related to the following items are being issued through this circular:
- Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion
Starting from July 27, 2023, uncooked snack pellets made using extrusion will have a lower GST rate of 5%. However, ready-to-eat extruded snack pellets will still have an 18% GST rate. - Fish Soluble Paste :
Starting from July 27, 2023, the GST rate on fish soluble paste (category CTH 2309) has been lowered to 5%, following the GST Council’s suggestion. This change is listed under serial number 108A. - Desiccated coconut :
In view of genuine interpretational issues, the GST Council has regularized the issues related to the applicability of GST rates on
desiccated coconut for past periods up to 27th July 2023 on an “as is” basis.
4. Biomass briquettes :
Due to genuine interpretation problems, the GST Council has resolved concerns about GST rates on biomass briquettes for past periods, without making any alterations, maintaining the current status.
5. Supply of raw cotton by agriculturists to cooperatives :
As per recommendation of the GST Council, it is hereby clarified that supply of raw cotton, including kala cotton, from agriculturists to cooperatives is a taxable supply and such supply of raw cotton by agriculturist to the cooperatives (being a registered person) attracts 5% GST on reverse charge basis under notification no. 43/2017-Central Tax (Rate) dated 14thNovember, 2017.
In view of prevailing genuine doubts, the issue for the past periods prior to issue of this clarification is hereby regularized on “as is basis”
6. Imitation zari thread or yarn known by any name in trade parlance :
As per the recommendation of the GST Council in its 50thmeeting, GST on imitation zari thread or yarn known by any name in trade parlance has been reduced from 12% to 5%. Accordingly, the rate has been notified vide S. No. 218AA with effect from 27thJuly,2023.
In view of the confusion in the trade regarding the applicability of GST rate on these products, the issue for past period upto 27.7.2023 is hereby regularized on “as is” basis
7. Plates, cups made from areca leaves :
As per the recommendation of the GST Council, issues relating to GST on plates and cups made from areca leaves are hereby regularized on “as is basis” for the period prior to 01.10.2019.
8. Goods falling under HSN heading 9021:
Goods categorized under HSN heading 9021 will now have a 5% GST rate, as per the GST Council’s recommendation. This adjustment applies to previous periods too. However, no refunds will be given for cases where GST was already paid at the higher rate of 12%.
