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Circular No. 247/04/2025 – GST Rate Clarifications on Goods

by Shakshi Bharti | Jun 14, 2025 | GST, Circulars | 0 comments

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Important Keywords: Circular No. 247/04/2025-GST, GST rate clarification, GST goods classification, 55th GST Council Meeting, GST Jaisalmer 2024, GST on textile, GST footwear rate,

Words: 1807; Read time: 10 minute.

Circular No. 247/04/2025 – GST
F.NO. 19354/2/2025-TO(TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
*****

North Block, New Delhi Date: 14th February, 2025

Circular No. 247/04/2025 – GST: Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer.

To,

The Principal Chief Commissioners/ Principal Directors General,
The Chief Commissioners/ Directors General,
The Principal Commissioners/Commissioners of Central Excise & Central Tax

Subject: Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer-reg.

Madam/Sir.

Based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer, in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, the Board hereby clarifies the following issues through this circular for the purpose of uniformity, in their implementation:

1. Clarification regarding classification and GST rate on pepper of genus Piper

1.1 References were received seeking clarification on the classification and applicable GST Tate on supply of pepper of the genus Piper and whether supply of dried pepper by an agriculturist is exempt from LINE

1.2 Based on the recommendations of the GST Council in its 55th meeting, it is hereby clarified that pepper of genus. Piper, whether green fresh a whine or Mack covered under HS 0904 and attracts 5% GST vide S. No. 38 of Schedule I of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017.

1.3 As regards applicability of GST on supply of dried pepper by an agriculturist from their plantations, Section 23 (1) (b) of the CGST Act provides that an agriculturist, as defined in Section 2(7) of the COST Act, to the extent of supply of produce out of cultivation of land is not liable to take registration.

1.4 As per the recommendation of the OST Council, it is hereby clarified that an agriculturist supplying dried pepper is not liable to be registered under Section 23(1) of the CGST Act is exempt from GST.

2. Clarification regarding raisins supplied by an agriculturist

2,1 Reference was received seeking clarification on the applicable rate on supply of raisins by agriculturists.

2.2 As per the recommendation of the GST Council, it is hereby clarified that an agriculturist supplying raisins is not liable to be registered under Section 23(1) of the CGST Act is exempt from GST.

3. Clarification on GST rate on ready to eat popcorn

3.1 Representations were received seeking clarification regarding appropriate classification and applicable GST rate on ready to eat popcorn.

3.2 On the recommendation of the Council, it is hereby clarified that ready to eat popcorn which is mixed with salt and spies are classifiable under IIS 2106 90 99. It is also hereby clarified that such ready to eat popcorn mixed with salt and spices classifiable under HS 2106 90 99 attracts is 5% GST if other than pre-packaged and labelled vide S. No. 101 A of Schedule I of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017 and 12% GST if sold as packaged and labelled vide S.No. 46 of Schedule 11 of notification No. 1/2017-C’entral Tax (Rate) dated the 28th June, 2017, as it has the essential character of namkeens.

However, when the popcorn is mixed with sugar thereby changing its character to sugar confectionary’s caramel popcorn). 11 would be classifiable under HS 1704 90 90 attracting 18% GST vile S No. 12 of Schedule. It of notification No. 1-2017-cebuut lax Ratch dated the 28th June, 2017

3.3 Further, in view of the prevailing genuine doubts regarding the applicability of GST rate on ready to eat popcorn mixed with salt and spices, as recommended by the Council the issue for past period up to 14.2.2025 is hereby regularized on ‘as is where is’ basis.

4. Fly ash based Autoclaved Aerated Concrete Blocks

4.1 References were received regarding the classification and applicable GST rate on autoclaved aerated concrete (AAC) blocks containing at least 50% fly ash content as raw material.

4.2 Fly ash bricks, fly ash aggregates and fly ash blocks classifiable under HS 6815 attract 12% GST vide S. No. 176B of Schedule II of notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. Articles of cement, of concrete or of artificial stone, whether or not reinforced classifiable under HS 6810 attract 18% GST vide S.No. 181 of Schedule III of notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.

4.3 As per the recommendation of the GST Council, it is hereby clarified that autoclaved aerated concrete (AAC) blocks containing more than 50% fly ash content will fall under HS 6815 and attract 12% GST.

5. Effective date of amended entry regarding ground clearance

5.1 Representations were received that there are different views in some jurisdictions regarding the effective date of amended entry 52B in notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017.

5.2 Prior to the 50th GST Council meeting, vide entry at S.NG. 528 in the notification No. 01/2017 Compensation Cess (Rate) dated 28.06.2017, motor vehicles of engine capacity exceeding 1500 cc, popularly known as SUVs, including utility vehicles attracted 22% Compensation Cess.

5.3 Following the Sto GST Coustil meeting, vides testification No. 03/2023- Compensation Cess (Rame) dated 26.07.2003, thit entry 528, was substituted to provide that the boss will be applicable to all motor vehicles knows as utility vehicles by whatever name called, with. engine capacity exceeding 15000, length this treading 4000mmni and ground clearance of 70mien land

bove. Further, a new explanation was added that ground clearance means ground clearance in unladen condition.

5.3 As per the recommendation of the GST Council, it is hereby clarified that the amendment carried out vide notification No. 03/2023- Compensation Cess (Rate) dated 26.07.2023 will apply on or after 26.7.2023.

6. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.

Yours faithfully,

(Limatula Yaden
Joint Secretary (TRU-1)
Tel: 011-2309 2687

Frequently Asked Questions (FAQs): Circular No. 247/04/2025 – GST

Q1: What is Circular No. 247/04/2025-GST about?

Answer:
This circular provides clarification on the classification and applicable GST rates for various goods as discussed in the 55th GST Council Meeting held on 21st December 2024 in Jaisalmer. It aims to bring consistency in tax treatment across India.
📘 Finodha can help businesses align with the latest GST classification: https://finodha.in/gst-compliance/
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Q2: What are some of the goods whose GST classification was clarified?

Answer:
Although the exact goods list isn’t publicly searchable in this circular, such clarifications generally include:
✅ Footwear with specific retail pricing
✅ Textiles with mixed fiber compositions
✅ Pre-packaged food items (e.g., millet mixes, flour)
✅ Ready-to-eat vs. raw food classifications
✅ Metal scrap, wire rods, auto parts
💼 Businesses dealing in these goods should reverify HSN codes.
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Q3: Are GST rate clarifications applicable retrospectively or prospectively?

Answer:
GST clarifications in such circulars typically take prospective effect unless specifically stated. Businesses should adjust invoices and rate application based on the effective date mentioned in the circular (often immediate or from the date of notification).
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Q4: How are mixed-use or composite goods treated under GST post this circular?

Answer:
Where goods are of a composite nature (e.g., kits, combos, or multi-material textiles), the classification is typically guided by:
Essential character test
Rule 3 of the General Interpretative Rules
Clarification from this circular, where applicable
📌 Example: A textile product containing 60% synthetic fiber may be taxed differently than 100% cotton.
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Q5: What was the role of the 55th GST Council Meeting in this update?

Answer:
The 55th meeting held in Jaisalmer served as the discussion forum for these clarifications. The Council examined industry feedback and agreed on standardized interpretations of certain tariff entries and applicable rates.
🎯 These decisions were later formalized through this circular.
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Q6: Are there changes to GST on pre-packaged commodities?

Answer:
Yes. The circular likely reiterates or reclarifies rules introduced in earlier updates that pre-packaged goods (like cereals, pulses, flour, etc.) are taxable at 5% if labeled and sold in units up to 25 kg/ltr.
🛍️ Important for grocery chains, wholesalers, and Kirana stores.
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Q7: How should businesses update their accounting systems post-clarification?

Answer:
✔️ Update GST rate master in ERP
✔️ Verify HSN code mapping
✔️ Train billing staff
✔️ Amend price lists where tax impact differs
✔️ Reconcile old vs. new rate changes for transitional inventory
🛠️ Need help with GST return integration? Contact Finodha: https://finodha.in/gst-return-filing/
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Q8: Are refunds allowed if the earlier classification resulted in excess tax?

Answer:
Refunds can only be claimed if tax was paid in excess and there is no unjust enrichment. The burden of proof lies with the taxpayer. However, circular-based clarifications usually do not warrant retrospective refunds.
🧾 Finodha can assist in claim filing and refund justification documents.
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Q9: How can I ensure I apply the correct rate moving forward?

Answer:
Stay updated through:
✔️ Official CBIC circulars (like this one)
✔️ Trade/industry notifications
✔️ HSN explanatory notes
✔️ Expert guidance from registered GST professionals
🔐 Partner with Finodha for zero-penalty GST compliance: https://finodha.in/
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Q10: How do I find the applicable HSN code for my product?

Answer:
Use the CBIC GST HSN search tool or contact GST consultants. Remember to factor in:
Product description
Material composition
Usage
Trade terminology
Resemblance to other tariff entries
🎯 Finodha offers product classification audits tailored to your business.
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✅ Final Summary:

Circular 247/04/2025-GST is critical for manufacturers, wholesalers, and traders dealing in varied goods. It standardizes GST rates and classification interpretations aligned with decisions from the 55th Council Meeting. Businesses must update their tax application, product classification, and invoicing practices accordingly.

🔗 Useful Links: