Notification No. 24/2019 - Central Tax (Rate) Explained

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Notification No. 24/2019 - Central Tax (Rate): Seeks to amend notification No. 7/2019 - Central Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.

[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 (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 07/2019- Central Tax (Rate), dated the 29^th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 254 (E), dated the 29^th March, 2019, namely:-

In the said notification, in the Table, against serial number 2, for the entry in column (2), the following entry shall be substituted, namely: -

“Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975).”.

2. This notification shall come into force with effect from the 1^st day of October, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: - The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 7/2019 - Central Tax (Rate), dated the 29^th March, 2019, vide number G.S.R. 254 (E), dated the 29^th March, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 24/2019 - Central Tax (Rate)

Q1: What is Notification No. 24/2019 – Central Tax (Rate)?

Answer:
Notification No. 24/2019 – Central Tax (Rate) amends Notification No. 7/2019 to clearly specify that cement falling under Chapter Heading 2523 of the Customs Tariff Act is covered under the relevant GST entry.

Q2: From which date is Notification No. 24/2019 applicable?

Answer:
The notification is effective from 1 October 2019, as stated in Paragraph 2 of the notification.

Q3: Which law is used to classify cement under GST after this amendment?

Answer:
Cement is classified using Chapter Heading 2523 of the First Schedule to the Customs Tariff Act, 1975, ensuring consistency between GST and Customs classification systems.

Q4: Does Notification No. 24/2019 change the GST rate on cement?

Answer:
No ❌. This notification does not change the GST rate on cement. It only clarifies the description and classification of cement.

Q5: Why was this amendment needed?

Answer:
Earlier descriptions of cement in notifications could lead to:
Classification disputes
Incorrect invoicing
Audit objections
By linking GST classification directly to Chapter 2523, ambiguity is removed.

Q6: What types of cement are covered under Chapter 2523?

Answer:
Chapter 2523 covers:
Ordinary Portland Cement (OPC)
Portland Pozzolana Cement (PPC)
White cement
Aluminous cement
Hydraulic cement
All these are clearly covered after this amendment.

Q7: How does this affect cement manufacturers?

Answer:
Manufacturers benefit from:
Clear classification
Reduced litigation risk
Easier GST return filing
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Q8: How does this impact cement traders and dealers?

Answer:
Traders must:
Use correct HSN (2523) on invoices
Charge GST at the applicable rate
Report correctly in GSTR-1 and GSTR-3B
Incorrect classification may lead to penalties.

Q9: Is GST registration mandatory for cement dealers?

Answer:
Yes. Since cement is a taxable good, businesses dealing in cement must obtain GST registration if turnover crosses the threshold.
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Q10: How does this amendment help during GST audits?

Answer:
During audits, officers verify:
Product classification
Applicable HSN codes
This notification provides strong legal backing for classifying cement under HSN 2523, reducing audit disputes.

Q11: Does this notification apply to imported cement?

Answer:
Yes. Since classification is linked to the Customs Tariff Act, it ensures uniform treatment of domestically supplied and imported cement.

Q12: What happens if cement is wrongly classified under another HSN?

Answer:
Wrong classification may result in:
Short payment or excess payment of GST
Interest under Section 50 of CGST Act
Penalty under Sections 73 or 74

Q13: How should cement be shown in GST returns?

Answer:
Cement supplies must be:
Reported with HSN 2523 in GSTR-1
Tax paid and disclosed in GSTR-3B
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Q14: Does this notification affect builders and real estate developers?

Answer:
Indirectly, yes. Builders must ensure:
Correct GST charged by suppliers
Proper ITC eligibility
Accurate costing in projects
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Q15: Who should carefully review Notification No. 24/2019?

Answer:
This notification is crucial for:
Cement manufacturers
Cement traders & stockists
Construction companies
Infrastructure contractors
Real estate developers
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Conclusion✅:

Notification No. 24/2019 – Central Tax (Rate) may look simple, but it plays a big role in preventing GST disputes by clearly aligning cement classification with Customs Tariff Heading 2523.

📌 Key takeaway:
Correct classification = correct GST = zero litigation.

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