Simplified Explanation of Notification No. 3/2023-Central Tax (Rate)
Purpose: This notification updates the CGST rate schedule for various goods by making changes to the classification and tax rates of certain items.
Key Points:
- Amendment Overview:
- This notification modifies Notification No. 1/2017-Central Tax (Rate) which details the CGST rates for different goods.
- Specific Changes:
- Change in Schedule I (2.5% Rate):
- Current Entry:
- The previous entry for S. No. 91A included “Jaggery (gur)” and “Khandsari Sugar.”
- Revised Entry:
- The new entry includes:
- “Jaggery of all types (including Cane Jaggery, Palmyra Jaggery), pre-packaged and labelled.”
- “Khandsari Sugar, pre-packaged and labelled.”
- “Rab, pre-packaged and labelled.”
- Effective Date: March 1, 2023.
- The new entry includes:
- Addition to Schedule II (6% Rate):
- New Entry:
- No. 186A:
- Item: Pencil sharpeners.
- Effective Date: March 1, 2023.
- No. 186A:
- Modification in Schedule III (9% Rate):
- Current Entry:
- No. 302A lists items with a 9% rate.
- Revised Entry:
- Adds the clarification: “[other than pencil sharpeners]”
- Effective Date: March 1, 2023.
- Current Entry:
- New Entry:
- Current Entry:
- Change in Schedule I (2.5% Rate):
- Examples:
- Jaggery and Rab:
- Before March 1, 2023:
- Jaggery and Khandsari Sugar were taxed at a different rate, not specifically mentioning pre-packaged and labelled goods.
- After March 1, 2023:
- Jaggery (including Cane and Palmyra) and Khandsari Sugar, when pre-packaged and labelled, are taxed at 2.5%.
- Rab, when pre-packaged and labelled, is also taxed at 2.5%.
- Before March 1, 2023:
- Pencil Sharpeners:
- Before March 1, 2023:
- Pencil sharpeners were not listed separately.
- After March 1, 2023:
- Pencil sharpeners are now included in Schedule II at a 6% tax rate.
- Items Excluded from 9% Rate:
- Before March 1, 2023:
- Certain items listed under S. No. 302A were taxed at 9%.
- After March 1, 2023:
- Pencil sharpeners are specifically excluded from this 9% tax rate.
