Important Keyword: GST on Rab, Notification 04/2023, Central Tax Rate change, GST exemption Rab, Non-packaged Rab GST, GST Council updates, Finodha GST expert,
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[F. No. CBIC-190354/21/2023-TO(TRU-II)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 28th February, 2023
Notification No. 04/2023 - Central Tax (Rate): Seeks to Amend Notification no. 2/2017-Central Tax (Rate), Dated 28.06.2017.
Table of Contents
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017, namely:-
In the said notification, in the Schedule, against S. No. 94, in Column (3), after the item (ii) and the entries relating thereto, the following item and entry shall be inserted, namely: -
“(iii) Rab, other than pre-packaged and labelled”.
2. This notification shall come into force on the 1st day of March, 2023.
(RAJEEV RANJAN)
Under Secretary
Note: - The principal notification No.2/2017-Central Tax (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E)., dated the 28th day of June, 2017 and was last amended by notification No. 13/2022 –Central Tax (Rate), dated the 30th December, 2022 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 919(E)., dated the 30th December, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 04/2023 – Central Tax (Rate)
Q1: What is Notification No. 04/2023 - Central Tax (Rate) about?
Answer:
This notification amends Notification No. 2/2017 - Central Tax (Rate) by including “Rab, other than pre-packaged and labelled” under exempted items. It means Rab, when sold in non-pre-packaged and unlabelled form, is exempt from GST from 1st March 2023.
Q2: What is “Rab” and how does this notification affect it?
Answer:
“Rab” is a traditional Indian sweetener made from sugarcane juice. This notification clarifies that only “Rab” which is not pre-packaged or labelled will be exempt from GST. Packaged and labelled Rab continues to attract applicable GST.
Q3: When does this amendment become applicable?
Answer:
The notification takes effect from 1st March 2023, ensuring exemption on non-packaged Rab sold from this date onward.
Q4: What was the GST status of Rab before this notification?
Answer:
Previously, Rab was taxable under GST depending on its packaging and branding. This notification brings clarity by explicitly exempting non-packaged and unlabelled Rab.
Q5: Why has the government issued this amendment?
Answer:
The amendment reflects the GST Council’s recommendation to support traditional, unbranded food items and local small-scale manufacturers by easing their tax burden.
Q6: Is this amendment relevant for small traders or farmers?
Answer:
Yes ✅. Farmers and local Rab producers who sell the product in loose form without branding now enjoy GST exemption, potentially reducing compliance and cost burdens.
Q7: How can GST professionals assist with compliance under this change?
Answer:
GST professionals like those at Finodha.in can help determine eligibility, structure billing appropriately, and file returns ensuring you stay compliant with the latest amendments. 👉 Check out: https://finodha.in/gst-compliance/
Q8: Does this exemption impact input tax credit (ITC)?
Answer:
Yes. Since exempt supplies do not attract GST, input tax credit on purchases related to production/sale of exempted Rab will not be available.
Q9: How can businesses make the transition based on this amendment?
Answer:
Businesses can update their invoicing software, segregate Rab inventory based on packaging and labeling, and consult GST experts for return filing adjustments. Start with GST Registration here: https://finodha.in/online-gst-registration/
Q10: Is the amendment part of a wider policy trend?
Answer:
Definitely! It aligns with the GST Council’s consistent push to simplify tax for unorganised and rural sectors. Learn more about business setup and tax structure at: https://finodha.in/setup-business/
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Download PDF: Notification No. 04/2023 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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