On the 19th of October, 2023, the Ministry of Finance, Department of Revenue, under the Government of India, issued Notification No. 18/2023-Central Tax (Rate). This notification introduces an important change in the taxation of food preparations made from millet flour, specifically in powder form. The amendment to the Central Goods and Services Tax Act, 2017, holds significance for both businesses and consumers alike.
In this article, we will delve into the details of Notification No. 18/2023 and discuss the potential impacts of this tax rate change.
Detailed Analysis:
1. Amendment Summary:
- Notification No. 18/2023-Central Tax (Rate) is issued under the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017.
- This amendment pertains to food preparations made from millet flour, specifically in powder form.
- A new entry, “94A,” has been added to the Schedule of the existing notification (No. 2/2017-Central Tax (Rate)).
2. Tax Implication:
- The newly inserted entry, “94A,” addresses food preparations made from millet flour, provided they contain at least 70% millets by weight.
- These food preparations are subject to the revised tax rate. However, an important exemption is noted: it applies to products that are not pre-packaged and labeled.
3. Impact on Businesses and Consumers:
- Businesses: Manufacturers and suppliers of millet flour-based food preparations will need to ensure compliance with the new tax rate.
- Consumers: The change in tax rate may have implications for the prices of millet flour-based food products. Consumers should be aware of these potential price adjustments.
4. Effective Date: Notification No. 18/2023 is set to come into force on the 20th of October, 2023. Businesses and consumers should prepare for the implementation of the new tax rate.
Conclusion: Notification No. 18/2023-Central Tax (Rate) introduces a notable change in the taxation of food preparations made from millet flour, particularly those in powder form. The tax rate adjustment, applicable to products containing at least 70% millets by weight and not pre-packaged and labeled, has implications for businesses and consumers.
For businesses involved in the production and supply of these food products, compliance with the updated tax rate is crucial. Consumers should be vigilant about potential price adjustments and stay informed about how this change may affect their purchasing decisions.
Being aware of these tax amendments and their implications is essential for maintaining compliance and making informed choices in the marketplace as the effective date approaches.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 18/2023-Central Tax (Rate) | Dated: 19th October, 2023
G.S.R.777(E).– In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, 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.2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017, namely:-
In the said notification, in the Schedule, after S. No. 94 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) |
| “94A. | 1901 | Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled”. |
2. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/1 95/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No.2/2017-Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E)., dated the 28th June, 2017 and was last amended by notification No. 04/2023 – Central Tax (Rate), dated the 28th February, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 150(E)., dated the 28th February, 2023.
