Simplified Explanation of Notification No. 6/2022-Central Tax (Rate)

Amendments to CGST Rate Schedule for Goods

Overview:

Notification No. 6/2022-Central Tax (Rate) updates the Central Goods and Services Tax (CGST) rate schedule for various goods by amending the earlier Notification No. 1/2017-Central Tax (Rate). The changes include adjustments to tax rates, updates to product descriptions, and clarifications on packaging requirements.

Key Details:

1. Amendment Overview:
   • Previous Notification: Notification No. 1/2017-Central Tax (Rate) specified the GST rates applicable to various goods.
   • Action Taken: Notification No. 6/2022 introduces new GST rates and modifies existing descriptions and conditions for several goods.
2. Specific Changes:
   • Introduction of New Rate:
     • 75% GST Rate: Added for goods specified in Schedule VII.
   • Modifications in Schedule I (2.5% Rate):
     • Curd, Lassi, Butter Milk: Taxed at 2.5% if “pre-packaged and labelled“.
     • Jaggery and Khandsari Sugar: Taxed at 2.5% if “pre-packaged and labelled“.
     • Murki (Parched Rice): Taxed at 2.5% if “pre-packaged and labelled“.
   • Modifications in Schedule II (6% Rate):
     • Guavas and Mangoes: Tax rate of 6% applies to mangoes (excluding dried ones).
     • Ostomy Appliances: Added to the 6% GST category.
     • Leather Goods: New entries for various types of leather and related products.
   • Modifications in Schedule III (9% Rate):
     • Printing Inks: Taxed at 9% under new entry.
     • Bicycle Pumps and Parts: New entries for bicycle pumps and parts.
     • E-Waste: Added with a 9% GST rate.

• Changes in Schedule VI (0.125% Rate):
  • Diamonds and Precious Stones: Adjusted descriptions for rough and uncut diamonds, and synthetic stones.
• New Schedule VII (0.75% Rate):
  • Goods Not Listed in Schedule VI: Items like certain precious metals and stones not listed in Schedule VI will be taxed at 0.75%.
• Updated Definition:
  • Pre-Packaged and Labelled: Refers to goods packaged and labeled as defined under the Legal Metrology Act, 2009.

3. Effective Date:
   • Implementation Date: These changes apply from July 18, 2022.

Example:

• Before the Amendment:

• • Curd: Exempt from CGST regardless of packaging.

• After the Amendment:

• • Curd: Now taxable at 2.5% GST if it is “pre-packaged and labelled“. If curd is not pre-packaged and labelled, it remains exempt.

• Jaggery: Previously exempt, but now taxed at 2.5% if “pre-packaged and labelled“.
• E-Waste: Previously not mentioned specifically, now taxed at 9% under Schedule III.

Purpose:

• Clarify GST Rates: The notification aims to clearly define the GST rates applicable to various goods, particularly focusing on packaging and labeling.
• Update Product Descriptions: New entries and updated descriptions ensure that the tax rates reflect current market practices and products.