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Notification No. 03/2020 – Central Tax (Rate) Explained

by Shakshi Bharti | Mar 2, 2024 | GST, 2020 Notifications, Central Tax 2020 Notifications, Notifications | 0 comments

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Important Keyword: Notification No. 03/2020 Central Tax Rate, CGST rate change goods, Matches GST rate India 2020, GST tariff amendments, Section 9(1) GST notification,

Words: 816; Read time: 4 minutes.

[F. No. 354/34/2020-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 25^th March, 2020

Notification No. 03/2020 - Central Tax (Rate): Seeks to amend notification No. 01/2017 - Central Tax (Rate) to prescribe change in CGST rate of goods.

GST: [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 9 and sub-section (5) of section 15 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 further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-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. 673(E), dated the 28th June, 2017, namely:-

In the said notification, -

1. in Schedule I – 2.5%, serial number 187 and the entries relating thereto shall be omitted;

2. in Schedule II - 6%,-

after serial number 75 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

“75A.

3605 00 10

All goods”;

serial numbers 202 and 203 and the entries relating thereto shall be omitted;

3. in Schedule III - 9%,-

serial number 73 and the entries relating thereto shall be omitted;

in serial number 379, for the entry in column (3), the entry “All goods” shall be substituted;

2. This notification shall come into force on the 1^st day of April, 2020.

(Gaurav Singh)
Deputy Secretary to the
Government of India

Note: - The principal notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28^th June, 2017 and was last amended by notification No. 01/2020- Central Tax(Rate), dated the 21^st February, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 134(E), dated the 21^st February, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2020 – Central Tax (Rate)

Q1: What is Notification No. 03/2020 – Central Tax (Rate)?

Answer:
It revises CGST rates for selected goods under Notification 01/2017 – CT (Rate) from 01.04.2020.

Q2: Which goods were placed into 12% GST slab newly?

Answer:
Tariff heading 3605 00 10 (All goods) including Matches.

Q3: Which items were removed from 2.5% slab?

Answer:
Items under Sl. No. 187 of Schedule-I were omitted.

Q4: Did any goods move out of 18% GST?

Answer:
Yes, Sl. No. 73 from Schedule-III was omitted → goods re-classified under new slab.

Q5: What changed in Serial No. 379?

Answer:
The wording now allows “All goods”, broadening the 9% CGST coverage.

Q6: Why remove Sl. Nos. 202 & 203?

Answer:
To rationalize tariff – avoid multiple slabs for similar goods.

Q7: Does this impact existing stocks?

Answer:
Yes — dealers must apply revised GST on supplies after 01.04.2020.

Q8: Must ERP be updated?

Answer:
Yes — to avoid incorrect GST rate invoicing.

Q9: Any impact on ITC?

Answer:
Yes — ITC eligibility follows new classification basis.

Q10: Any compliance risk if old rates applied?

Answer:
Wrong tax collection → Demand + interest + penalty under Section 73/74.

Q11: Where is legal authority granted from?

Answer:
Section 9(1) (levy of CGST) & Section 15(5) (valuation rules).
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Q12: Does this apply to composition dealers?

Answer:
Indirectly — affects purchase price & ITC for suppliers.

Q13: Impact on MSMEs?

Answer:
Pricing & margin planning required due to tax slab changes.
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