Article analyses 14 Notifications issued by CBIC on 28.02.2023 to give effect to recommendation of 49th GST Council Meeting. CBIC issued Notification No. 01/2023-Central Tax (Rate) to 04/2023-Central Tax (Rate) and also issued similar notifications under UTGST and IGST Act, 2017. In Addition to these, CBIC issued Notification No. 01/2023- Compensation Cess (Rate) and Notification No.14/2023-Customs dated 28th Feb, 2023.
ANALYSIS OF LATEST GST RATE NOTIFICATIONS DATED 28th FEB 2023
|S.NO.||NOTIFICATION NUMBER||COMMODITY||RATE||Effect. Date|
|1.||01/2023-Central Tax (Rate) – 28th Feb 2023||Entrance Examination Fee Exemption area widened:-
A new clause (iva) has been added to Para 3 in Explanation of N.No. 12/2017 (Service Exemption Notification)
As per this clause any authority, board or body set up by the Central Govt. or State Govt. including National Testing Agency for conduct of Entrance examination for admission to educational institutions shall be treated as educational institution for limited purpose of providing by way of conduct of entrance exam for admission to education institutions .
Hence exemption earlier available to Central and State Edu. Boards has been extended to the abovementioned authority, board, body including NTA.
|2.||02/2023-Central Tax (Rate) – 28th Feb 2023||Services By Courts and Tribunals covered under RCM:-
In Explanation in clause (h) of N. No. 13/2017 (RCM Service notification), for the words ‘and State Legislature’ the words ‘State Legislatures, Courts and Tribunals’ shall be substituted.
Now the Explanation reads as follows :-
provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament, State Legislatures, Courts and Tribunals.
Now RCM provisions will apply to Service provided by Courts & Tribunal as they apply currently to Central Govt. & State Govt. (Entry no 5,5A of N, No. 13/2017)
|3.||03/2023 –Central Tax (Rate)– 28th Feb 2023||Tax on Rab – Pre-packaged and Labelled.
Jaggery of All types including Can Jaggery (Gur) , Palmyra Jaggery , Pre-packaged and Labelled
Khandsari Sugar – Pre-packaged and Labelled.
(These commodities were already there in the in Entry No.91A of rate schedule I-2.50%)
‘Rab- Pre-packaged and Labelled.’
(Newly Added to Entry No.91A by substituting whole entry No.91A of rate schedule I -2.50%)
|4.||03/2023 –Central Tax (Rate)– 28th Feb 2023||Pencil Sharpeners
It Is Added to Entry No.186A of Schedule II- 6% and removed from the Entry No. 302A from Schedule III -9% by making addition “Other than Pencil Sharpener”
|5.||04/2023 – Central Tax (Rate) – 28th Feb 2023||Rab, other than pre-packaged and labelled.
It is added the entry No. 94(iii) of Exemption Schedule . The other commodities as mentioned in the S.No.3 above (Jaggery of All types including Can Jaggery (Gur), Palmyra Jaggery, other than Pre-packaged and Labelled, Khandsari Sugar – other than Pre-packaged and Labelled were already there in Exemption schedule in Entry No.94(i) and (ii) of the exemption schedule.
|6.||01/2023- Compensation Cess (Rate)||Compensation Cess Rate on coal Rejects:-
Coal Rejects supplied to a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit of the same has not been availed by any person.
In entry No.41A of the compensation cess rate schedule It was there as “supplied by the Coal washeries” and now it is further “added as supplied to Coal washeries” also. Hence Now “Sale and Purchases” of Coal rejects both of coal washeries shall Nil Compensation rate subject to the condition mentioned above with respect to coal rejects.
This is done for resolving industry specific issue. Power generating units which were not getting exemption while supplying coal rejects to the washery and hence were using ITC of cess on such supply. This was further obstructing Coal Washeries to supply Coal rejects at Nil Rate as Power unit has taken ITC of Cess earlier. Now with amendment this issue has been resolved.
The burden of compensation cess would remain on Power Generating Units.
|7.||Notification No.14/2023- Customs, dated 28th Feb. 2023||An Explanation has been added to the Notification No. 104/94 – Cus, Dated 16-03-1994:-
A device such as tag, tracking device or data logger already affixed on the container at the time of import shall also be eligible for exemption from the duty of customs and the integrated tax as is available to the said container under notification.
Background:- An exemption is available on the containers of durable nature from custom duty & IGST subject to certain conditions as mentioned in the Notification No. 104/94 – Customs, Dated 16-03-1994 . The exemption is related to the containers which were re-exported within specified time as mentioned in the Notification.
Now this exemption is extended to the “device such as tag, tracking device or data logger already affixed on the container” at the time of import .