On October 19, 2023, the Ministry of Finance, Department of Revenue, Government of India, issued Notification No. 17/2023-Central Tax (Rate), introducing significant changes in tax rates under the Central Goods and Services Tax Act, 2017. These changes have far-reaching implications, particularly for products like molasses and food preparations made from millet flour.
In this article, we will provide a detailed analysis of the amendments brought about by Notification No. 17/2023 and their potential impact.
Detailed Analysis:
1. Amendment Overview:
- The amendment is exercised under 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.
- Changes are introduced to the existing Notification No. 1/2017-Central Tax (Rate), dated June 28, 2017.
2. Alterations in Schedule I – 2.5%:
- Entry “92A” is added, impacting the tax rate for “Molasses.”
- Entry “96A” is added for “Food preparation of millet flour in powder form, containing at least 70% millets by weight, which is pre-packaged and labeled.”
3. Revisions in Schedule III – 9%: Changes are made to S. No. 13, incorporating “food preparation of millet flour in powder form, containing at least 70% millets by weight, pre-packaged and labeled.”
4. Amendment in Schedule IV – 14%: S. No. 1 and its entries are omitted, impacting a specific category of products.
5. Impact on Businesses and Consumers:
Molasses: The change in tax rate for molasses may affect businesses involved in its production, distribution, and use across various industries.
Millet Flour Preparations: The amendment regarding millet flour-based food preparations, particularly those pre-packaged and labeled, has implications for both manufacturers and consumers.
6. Effective Date: Notification No. 17/2023-Central Tax (Rate) is set to be enforced from October 20, 2023. Businesses and consumers must adapt to these new tax rates accordingly.
Conclusion:
Notification No. 17/2023-Central Tax (Rate) introduces substantial amendments to tax rates under the Central Goods and Services Tax Act, 2017. These changes encompass products like molasses and pre-packaged, labeled food preparations made from millet flour.
Businesses and consumers should be aware of these amendments and their implications. The effective date of October 20, 2023, is the deadline for implementing these new tax rates. Adapting to these modifications is crucial to ensure compliance and make informed decisions in the changing taxation landscape.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 17/2023-Central Tax (Rate) | Dated: 19th October, 2023
G.S.R. 774(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 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28thJune, 2017, namely:-
In the said notification, –
(A) in Schedule I – 2.5%, –
(i) after S. No. 92 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) |
| “92A. | 1703 | Molasses”; |
(ii) after S. No. 96 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
|
(1) |
(2) | (3) |
| “96A. | 1901 | Food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled”; |
(B) in Schedule III – 9%,
(i) against S. No. 13, in column (3), for the words and figures “of heading 1905”, the words and figures “of heading 1905; food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled ” shall be substituted;
(ii) after S. No. 25 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) |
| “25A. | 2207 10 12 | Spirits for industrial use”; |
(C) in Schedule IV – 14%, S. No. 1 and the entries relating thereto shall be omitted.
2. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No. 1/2017-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. 673(E)., dated the 28th June, 2017 and was last amended by notification No. 11/2023- Central Tax (Rate), dated the 29th September, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E), dated the 29th September, 2023.
