Important Updates in Notification No. 9/2023-Central Tax (Rate)

Simplified Explanation of Notification No. 9/2023-Central Tax (Rate)

Purpose: This notification revises the GST rates for certain goods. It updates the GST rate schedules to include new items and adjust the rates for specific products.

Key Amendments:

1. Addition to GST Rate Schedules:
   • Schedule I (2.5% Rate):
     • New Items Added:
       • Un-fried or Un-cooked Snack Pellets (S. No. 99B):
         • Example: Extruded snack pellets, like those used to make puffed snacks, now fall under a 2.5% GST rate.
       • Fish Soluble Paste (S. No. 108A):
         • Example: Paste made from fish used in various culinary applications is now taxed at 2.5%.
       • Linz-Donawitz (LD) Slag (S. No. 156B):
         • Example: A by-product from steel production known as LD slag is added under the 2.5% GST rate.
       • Imitation Zari Thread/Yarn (S. No. 218AA):
         • Example: Artificial zari thread used in fabrics and textiles is now listed at a 2.5% GST rate.
       • Schedule II (6% Rate):
         • Modification to Existing Entry (S. No. 137):
           • Metallised Yarn:
             • The entry is updated to exclude real zari (gold) and silver threads but include imitation zari yarn. Example: Yarn that has been combined with metal and is not real gold or silver thread is now taxed at 6%.
           • Schedule III (9% Rate):
             • Adjustments to Existing Entries:
               • Toasted Bread & Snack Pellets (S. No. 16):
                 • Example: The 9% GST rate now covers both toasted bread and snack pellets produced by extrusion.
               • Iron/Steel Waste (S. No. 28):
                 • Example: The rate of 9% now applies to waste from iron or steel manufacturing, excluding LD slag.

Effective Date:

• The revised GST rates and entries are effective from July 27, 2023.