Amendment to CGST Rate Schedule for Certain Goods

Simplified Explanation of Notification No. 1/2024-Central Tax (Rate)

Heading: Amendment to CGST Rate Schedule for Certain Goods

Purpose of the Notification:

This notification updates the GST rate schedule by amending the entries related to specific goods under the 2.5% GST rate category.

Key Details:

1. Amendment in GST Rate Schedule:
   • Previous Notification: Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017, which lists the GST rates applicable to various goods.
   • Amendment Details:
     • S. No. 165 and S. No. 165A in Schedule I for the 2.5% GST rate category are being updated.
     • Old Entries: The specific goods mentioned under these S. No.s are being replaced.
     • New Entries: The new entries for both S. No. 165 and S. No. 165A are updated to:
       • 2711 12 00: Heavy oils and preparations (like lubricating oils).
       • 2711 13 00: Kerosene.
       • 2711 19 10: Other refined petroleum products.
2. Effective Date:
   • When: The changes will be effective from January 4, 2024.

Example:

• Scenario: A company deals with refined petroleum products and needs to apply the correct GST rate.
• Old Rate Application: Under the old schedule, products under certain HS codes (like those previously listed under S. No. 165) had different GST rate classifications.
• New Rate Application: With the new amendment, products with HS codes:
  • 2711 12 00 (Heavy oils),
  • 2711 13 00 (Kerosene),
  • 2711 19 10 (Other refined products),
  • Will now be categorized under the 2.5% GST rate.

Summary:

• What: GST rate schedule updated for certain goods.
• Who: Applies to businesses dealing with the specified HS codes.
• When: Effective from January 4, 2024.

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