Notification No. 20/2023-Integrated Tax (Rate) Dated: 19th October, 2023

On the 19th of October, 2023, the Ministry of Finance, Department of Revenue, Government of India, issued Notification No. 20/2023-Integrated Tax (Rate). This notification introduces crucial amendments to tax rates that affect specific commodities. In this article, we will provide an in-depth analysis of these changes and their potential implications.

Detailed Analysis:

1. Molasses Taxation: The notification introduces changes in Schedule I, which pertains to items taxed at 5%. After S. No. 92, a new S. No. 92A is inserted, which concerns “Molasses.” This amendment modifies the tax rate for molasses, and businesses dealing with this commodity must adapt to the new tax structure.

2. Millet Flour Preparations: Another significant change in Schedule I is the introduction of S. No. 96A. This entry pertains to “Food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labeled.” The introduction of this entry signifies new tax implications for these specific food preparations.

3. 18% Tax Rate Modification: The changes extend to Schedule III, which is associated with items taxed at 18%. S. No. 13 is modified to include “food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labeled.” This aligns the tax rate for these preparations with other items in this category.

4. Removal of 28% Tax Category: In Schedule IV, S. No. 1, and its corresponding entries are omitted. This change eliminates a specific tax category, affecting the taxation of items previously listed under this category.

Conclusion:

Notification No. 20/2023-Integrated Tax (Rate) issued by the Ministry of Finance, Department of Revenue, Government of India, introduces substantial amendments to the taxation of molasses and food preparations made from millet flour. These amendments apply to items listed in different tax schedules, impacting tax rates, and classifications.

These changes will take effect from the 20th of October, 2023. It is imperative for businesses and individuals involved in the production, distribution, or use of molasses and millet flour preparations to stay informed about these tax changes. Adherence to the new tax regulations is essential to avoid legal or financial complications and to ensure compliance with the updated tax structure in the Indian market.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 20/2023- Integrated Tax (Rate) | Dated : 19^th October, 2023

New Delhi, the 19^th October, 2023

G.S.R.775(E).- In exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 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 in the Ministry of Finance (Department of Revenue), No. 1/2017-Integrated 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. 666(E)., dated the 28^thJune, 2017, namely:-

In the said notification, –

(A) in Schedule I – 5%, –

(i) after S. No. 92 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(ii) after S. No. 96 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(B) in Schedule III – 18%,

(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: –

(C) in Schedule IV – 28%, S. No. 1 and the entries relating thereto shall be omitted.

2. This notification shall come into force with effect from the 20^th day of October, 2023.

[F. No. CBIC-190354/1 95/2023-TO(TRU-II)-CBEC]

Vikram Wanere
Under Secretary

Note: – The principal notification no. 1/2017-Integrated Tax (Rate), dated the 28^thJune, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E)., dated the 28^th June, 2017 and was last amended by notification No. 14/2023– Integrated Tax (Rate), dated the 29^th September, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 712(E), dated the 29^th September, 2023.