Stay updated with the latest notifications from the 49th GST Council Meeting. Changes in GST rates, exemptions, and more effective from March 1, 2023.
CBIC has issued new Notifications under Central Tax (Rate) to give effect to GST rate changes, exemptions and change in compensation cess as recommended in 49th meeting of GST Council. These shall be effective from March 1, 2023.
GSTN keeps issuing advisories and new functionalities to upgrade the portal and for ease of taxpayers. Recently, it issued advisories on forward charge option for GTAs, geo-coding address and new invoice portal.
National Testing Agency to be treated as ‘Educational Institution’
- CBIC has issued notification to amend Notification No. 12/2017-CT (Rate) dated 28.06.2017 to provide that any authority, board or body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institution for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.
- Further, the services by way of conduct of entrance examination for admission to educational institutions by National Testing Agency or any other authority/board by set up by the Central Government or State Government shall be exempt from the levy of GST.
- This shall come into force w.e.f. 01.03.2023.
[Source: Notification No. 01/2023 -Central Tax (Rate) dated 28.02.2023]
Tax to be paid under Reverse Charge Mechanism (RCM) on Services provided by Courts / Tribunals
- The CBIC has amended Notification No. 13/2017-CT (Rate) dated 28.06.2017 to provide that services provided by Courts and Tribunals shall be covered under RCM and provisions of RCM Notification No. 13/2017-CT (Rate) shall apply to Courts and Tribunals as they apply to the Central Government and State Governments.
- This Notification shall come into force with effect from 1st March, 2023.
[Source: Notification No. 02/2023 -Central Tax (Rate) dated 28.02.2023]
GST on Pencil Sharpeners and Rab reduced
- CBIC has amended Notification No. 1/2017-CT (Rate) to provide that pencil sharpeners shall be taxable at 12% (6% CGST; 6% SGST).
- This will cover pencil sharpeners under HSN Code 8214
- The rate on pencil sharpeners has been reduced from 18% to 12%.
- All other items under this HSN Code (except pencil sharpeners) will be taxed at 18%
- Also, “Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labeled” will be taxed @ 5%
- This Notification shall be effective from 1st March, 2023.
[Source: Notification No. 03/2023 -Central Tax (Rate) dated 28.02.2023]
GST exempt on ‘Rab’, if not pre-packaged and labelled
- CBIC has amended Notification No. 2/2012-CT (Rate) dated 28.06.2017 to exempt ‘Rab’ which is not pre-packaged and labelled.
- However, pre-packaged and labelled Rab shall be taxable at 5%.
- This exemption shall be effective from 1st March, 2023.
[Source: Notification No. 04/2023 -Central Tax (Rate) dated 28.02.2023]
No Compensation Cess on ‘Coal Rejects’ supplied to a coal washery
- CBIC has amended Notification No. 1/2017- Compensation Cess (Rate) dated 28.06.2017 to extend the exemption benefit on ‘coal rejects’ supplied to coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
- With this amendment, the coal washeries shall be completely out from the ambit of compensation cess liability as far as the supplies of coal rejects are concerned.
- However, burden of compensation cess would remain with the power plants.
- This exemption shall be effective w.e.f. 01.03.2023.
[Source: Notification No. 1/ 2023-Compensation Cess (Rate) dated 28.02.2023]
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