Amendments to Central Tax Rates 2024: Key Changes in Notification 01/2017

Introduction: The Government of India, Ministry of Finance, has issued notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017. This notification seeks to introduce amendments to notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017. The amendments, made under the powers conferred by the Central Goods and Services Tax Act, 2017, bring significant changes to the existing tax rates.

Detailed Analysis: The amendments primarily focus on Schedule I – 2.5%. Two notable changes have been made:

1. Modification in Entry for S. No. 165:

• Old Entry: “2711 12 00, 2711 13 00, 2711 19 10”
• New Entry: “2711 12 00, 2711 13 00, 2711 19 10”

2. Alteration in Entry for S. No. 165A:

• Old Entry: “2711 12 00, 2711 13 00, 2711 19 10”
• New Entry: “2711 12 00, 2711 13 00, 2711 19 10”

These changes are crucial for businesses dealing with the specified goods under Schedule I – 2.5%. The effective date for the implementation of these amendments is the 4th day of January, 2024.

Conclusion: The amendments introduced through notification No.1/2017-Central Tax (Rate) mark a significant step in the government’s continuous efforts to refine the tax structure. Businesses are advised to thoroughly review the changes and make necessary adjustments to ensure compliance with the updated rates. This move reflects the dynamic nature of tax policies, adapting to the evolving economic landscape. Stay informed and prepared for these changes to navigate the regulatory landscape effectively.

Note: The principal notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017, was last amended by notification No. 17/2023 – Central Tax (Rate), dated the 19^th October, 2023.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 01/2024-Central Tax (Rate) | Dated: 03^rd January, 2024

G.S.R.10(E).- In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28^thJune, 2017, namely:-

In the said notification, in Schedule I – 2.5%, –

(i) against S. No. 165, in column (2), for the entry, the entry “2711 12 00, 2711 13 00, 2711 19 10” shall be substituted;

(ii) against S. No. 165A, in column (2), for the entry, the entry “2711 12 00, 2711 13 00, 2711 19 10” shall be substituted;

2. This notification shall come into force with effect from the 4^th day of January, 2024.

[F. No. 190354/223/2023-TRU]

(Nitish Karnatak)

Under Secretary

Note: – The principal notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28^th June, 2017 and was last amended by notification No. 17/2023 – Central Tax (Rate), dated the 19^th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 774(E), dated the 19^th October, 2023.