Amendments to CGST Exempt Goods List: Notification No. 7/2022-Central Tax (Rate)
Simplified Explanation of Notification No. 7/2022-Central Tax (Rate)
Heading: Amendments to CGST Exempt Goods List
Overview:
Notification No. 7/2022-Central Tax (Rate) updates the list of goods exempt from Central Goods and Services Tax (CGST) by amending the previous Notification No. 2/2017-Central Tax (Rate). These changes clarify which goods are exempt from CGST and specify new conditions related to packaging and labeling.
Key Details:
- Amendment Overview:
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- Previous Notification: Notification No. 2/2017-Central Tax (Rate) listed various goods that were exempt from CGST.
- Action Taken: Notification No. 7/2022 revises these exemptions and clarifies the conditions related to the packaging and labeling of exempt goods.
- Specific Changes:
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- General Exemption Condition: For various entries, the exemption now specifically applies to goods “other than pre-packaged and labelled“.
- Updated Entries:
- Curd, Lassi, Butter Milk: The exemption applies only to items “other than pre-packaged and labelled“.
- Jaggery and Khandsari Sugar: Exempt only if “pre-packaged and labelled“.
- Murki: Updated to “other than pre-packaged and labelled“.
- Omissions: Certain entries and serial numbers related to exemptions are removed from the list.
- New Definition: “Pre-packaged and labelled” refers to commodities packaged and labeled as defined under the Legal Metrology Act, 2009.
- Effective Date:
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- Implementation Date: The updated exemptions and definitions apply from July 18, 2022.
Example:
- Before the Amendment:
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- Curd and Butter Milk: Exempt from CGST without regard to packaging.
- After the Amendment:
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- Curd and Butter Milk: Exempt from CGST only if they are “not pre-packaged and labelled“. If they are pre-packaged and labelled, they will now be subject to CGST.
- Jaggery: Previously, jaggery might have been exempt regardless of packaging. Post-amendment, only non-pre-packaged and non-labelled jaggery is exempt.
Purpose:
- Clarity on Packaging: The amendment specifies that only goods that are not pre-packaged and labelled are eligible for CGST exemption. This ensures that tax exemptions are clear and consistently applied.
- Regulatory Compliance: It updates businesses on the new conditions and definitions, aiding in accurate tax reporting and compliance.
This notification aims to streamline the application