CBIC Issues Important Clarification on GST Rates and Classification (Goods) Based on Recommendations from the 54th GST Council

By: Admin
October 12, 2024
Categories: 54th GST Council
4 Min Read

The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 235/29/2024-GST on October 11, 2024, providing significant clarifications regarding GST rates and classification of goods. These clarifications are based on the recommendations made by the 54th GST Council Meeting held on September 9, 2024, in New Delhi. The circular aims to ensure uniformity in the application of GST for specific goods.

Key Clarifications:

  1. GST Rate on Extruded/Expanded Savoury Food Products:

Clarification: Representations were received concerning the classification and GST rate on savoury or salted extruded snack pellets. It was clarified that with effect from October 10, 2024, these products will fall under HS 1905 90 30 and attract a 12% GST rate, aligning them with similar edible preparations like namkeens and bhujia.

For past periods, these products attracted 18% GST, while un-fried or un-cooked snack pellets continue to be taxed at 5%.

  1. GST Rate on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways:

Clarification: There was a query about the classification of Roof Mounted Air Conditioning Machines used in railways, which could either fall under HS 8415 (with a 28% GST) or HS 8607 (with an 18% GST). Based on Section notes of the Customs Tariff Act, 1975, the CBIC confirmed that these air conditioning machines are classified under HS 8415 and will attract a 28% GST rate.

  1. GST Rate on Car and Motorcycle Seats:

Clarification: Clarification was sought regarding the GST rate on seats for four-wheelers and two-wheelers. It was confirmed that:

Motorcycle seats are classified under HS 8714 and attract 28% GST.

Car seats are classified under HS 9401, and the GST rate for these seats has been increased to 28% prospectively from October 10, 2024 (previously 18%).

Conclusion:

The CBIC circular provides essential clarity on GST rates for specific goods based on the 54th GST Council Meeting’s recommendations. These clarifications ensure consistency and address disputes regarding classification and tax rates.

Field officers are instructed to implement these clarifications effectively.

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