Important Keyword: Notification No. 03/2023 - Central Tax (Rate), GST rate on jaggery, khandsari sugar GST, GST on pencil sharpeners, GST amendments March 2023, Finodha GST expert, GST professional support, 1/2017 Central Tax (Rate) update,
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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. 03/2023 - Central Tax (Rate): Seeks to Amend Notification No. 1/2017-Central Tax (Rate), Dated 28.06.2017
[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 9 and sub-section (5) of section 15 of the CGST 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, -
(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 ”;
(ii) 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”; |
(iii) 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-Central Tax (Rate), dated the 28thday of 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 28th day of June, 2017 and was last amended by notification No. 12/2022 –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. 916(E), dated the 30th December, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2023 – Central Tax (Rate)
Q1: What is Notification No. 03/2023 - Central Tax (Rate) all about?
Answer:
This notification, issued on 28th February 2023, amends the original Notification No. 01/2017 - Central Tax (Rate). It introduces changes to GST rates applicable to certain products, specifically jaggery, khandsari sugar, rab, and pencil sharpeners. These changes came into effect from 1st March 2023.
Q2: What changes have been made regarding GST on jaggery?
Answer:
As per the updated entry under Schedule I (2.5%), GST at 2.5% is now applicable to:
All types of jaggery, including cane jaggery (gur) and palmyra jaggery,
Khandsari sugar, and
Rab — all when pre-packaged and labelled.
Q3: What GST rate applies to pencil sharpeners now?
Answer:
Pencil sharpeners have been moved to Schedule II (6%) under S. No. 186A. A clarification has also been added in Schedule III (9%) under S. No. 302A to exclude pencil sharpeners from the 9% bracket. Thus, pencil sharpeners are now taxed at 6% GST.
Q4: When do these amendments come into effect?
Answer:
All changes under Notification No. 03/2023 - Central Tax (Rate) came into force on 1st March 2023.
Q5: Why is this notification significant for small traders and retailers?
Answer:
Traders dealing in jaggery, khandsari sugar, or pencil sharpeners need to realign their invoicing and GST return filing practices based on the new rates. Misclassification can lead to compliance issues.
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Q6: Where can businesses register or update their GST details in line with this amendment?
Answer:
Businesses can register or modify their GST profile reflecting product categorization updates here:
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Q7: What was the previous GST treatment for these items?
Answer:
Previously:
Jaggery and related items were not uniformly specified under packaged and labelled conditions.
Pencil sharpeners could have been misclassified under the 9% bracket, which is now clarified and corrected.
Q8: How can Finodha help traders impacted by this notification?
Answer:
Finodha offers expert guidance in:
Product classification under GST
Filing returns accurately under updated rates
GST compliance for traders, manufacturers, and e-commerce sellers
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Download PDF: Notification No. 03/2023 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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