Important Keyword: Notification No. 03/2023 - Union Territory Tax (Rate), GST on jaggery, GST pencil sharpener, GST sweeteners 2023, Finodha GST advisory, pre-packaged goods GST,
Words: 1115; Read time: 6 minutes.
Table of Contents
[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. 03/2023 - Union Territory Tax (Rate): Seeks to amend notification no. 1/2017-Union Territory Tax (Rate), dated 28.06.2017.
GST: [TO BE PUBLISHED IN THE GAZZETE 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 7 of the UTGST Act, 2017 (14 of 2017) , the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Union Territory 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. 710 (E)., dated the 28th June, 2017, namely:-
In the said notification, -
(i) in Schedule I –2.5%, against S. No. 91A, in column (3), for the entry, the following entry shall be substituted, namely: -
“Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labelled ”;
- in Schedule II –6%, after S. No. 186 and entries relating thereto, the following S. No. and entries shall be inserted, namely: -
| (1) | (2) | (3) |
| “186A | 8214 | Pencil sharpeners”; |
- in Schedule III –9%, against S. No. 302A, in column (3), at the end, the brackets and words “[other than pencil sharpeners]” shall be inserted.
2. This notification shall come into force on the 1st day of March, 2023.
(RAJEEV RANJAN)
Under Secretary
Note: - The principal notification No.1/2017-Union Territory Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th June, 2017, and was last amended by notification No.12/2022–Union Territory 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. 918(E), dated the 30th December, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2023 - Union Territory Tax (Rate)
✅ Q1: What is Notification No. 03/2023 - Union Territory Tax (Rate)?
Answer:
Notification No. 03/2023 - Union Territory Tax (Rate), dated 28th February 2023, makes amendments to Notification No. 1/2017, which specifies GST rates for goods. This notification:
Revises the GST rate on jaggery, khandsari sugar, and rab (if pre-packaged and labelled)
Reclassifies pencil sharpeners into a lower GST slab (6%)
Comes into effect from 1st March 2023
📄 For GST classification help, consult Finodha GST Experts.
✅ Q2: What GST rate now applies to jaggery, khandsari sugar, and rab?
Answer:
As per the updated Schedule I – 2.5%, the following goods, if pre-packaged and labelled, attract 2.5% UTGST (i.e., total 5% GST):
Jaggery (all types): Cane, Palmyra, etc.
Khandsari Sugar
Rab
Note: If not pre-packaged and labelled, these items remain exempt under Notification 2/2017.
🍬 Unsure if your sweetener product is taxable? Get clarity from Finodha GST Compliance.
✅ Q3: What change has been made regarding pencil sharpeners?
Answer:
Pencil sharpeners have been:
Shifted from Schedule III (9%) to Schedule II (6%)
Listed under a new S. No. 186A in Schedule II
Explicitly excluded from S. No. 302A of Schedule III
📝 For stationery business GST guidance, visit Finodha GST Registration Services.
✅ Q4: Why were these GST rate changes introduced?
Answer:
These changes aim to:
Reduce tax burden on essential and low-cost items like pencil sharpeners
Clarify rate applicability on traditional sweeteners when pre-packaged
Align GST slabs with evolving market practices and packaging trends
🔍 Stay ahead on GST changes with Finodha GST Filing Services.
✅ Q5: What is the effective date of Notification No. 03/2023?
Answer:
The amendments made under Notification No. 03/2023 came into effect from 1st March 2023. All supplies of covered items from this date must apply the updated GST rates.
📆 For timely transition of GST rates, rely on Finodha GST Return Experts.
✅ Q6: How does this affect small traders of jaggery and khandsari sugar?
Answer:
Small traders need to determine:
If their products are pre-packaged and labelled → 5% GST applies
If sold loose/unpackaged → GST-exempt under Notification No. 2/2017
📦 Selling to wholesale or retail markets? Get professional GST advice at Finodha.
✅ Q7: Is there a difference between Schedule I, II, and III in GST notifications?
Answer:
Yes:
Schedule I (2.5%) → Basic goods with minimal tax (Total 5% GST)
Schedule II (6%) → Goods of moderate importance (Total 12%)
Schedule III (9%) → Standard goods (Total 18%)
This notification shifts pencil sharpeners from 9% to 6%, making them more affordable.
📚 Get help with HSN/SAC classification at Finodha GST Services.
✅ Q8: Who should take immediate action after this amendment?
Answer:
Retailers and manufacturers of jaggery, rab, khandsari sugar
Stationery suppliers dealing with pencil sharpeners
Traders selling pre-packaged goods
📦 Plan inventory and pricing with expert guidance from Finodha Setup Business Team.
✅ Q9: Where was this amendment published officially?
Answer:
The amendment was published in the Gazette of India, vide G.S.R. under Notification No. 03/2023 - Union Territory Tax (Rate), dated 28th February 2023, by the Ministry of Finance (Department of Revenue).
🧾 Keep your documentation updated. Explore Digital Signature Services.
✅ Q10: How do I know if my product falls under "pre-packaged and labelled"?
Answer:
As per Legal Metrology Rules, a pre-packaged and labelled product is one that is:
Sealed before sale
Bears name, price, manufacturer, etc.
Intended for retail sale
Only these attract GST. Loose or unpackaged items are exempt under the relevant schedule.
📦 Get packaging and compliance help with Finodha MSME Services.
Download PDF: Notification No. 03/2023 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
