Important Keyword: Notification No. 1/2017-Integrated Tax (Rate), Notification No. 12/2022 –Integrated Tax (Rate), Notification No. 03/2023- Integrated Tax (Rate), F. No. CBIC-190354/21/2023-TO(TRU-II)-CBEC, Section 5(1) IGST Act 2017, Section 5(1) of the IGST Act 2017,
Words: 918; Read time: 5 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 - Integrated Tax (Rate): Seeks to amend notification no. 1/2017-Integrated 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 5 of the IGST Act, 2017 (13 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-Integrated 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. 666(E)., dated the 28th June, 2017, namely:-
In the said notification, -
(i) in Schedule I –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 –12%, 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 –18%, 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-Integrated 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. 666(E), dated the 28th June, 2017 and was last amended by notification No. 12/2022 –Integrated 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.917(E), dated the 30th December, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2023 - Integrated Tax (Rate)
Q1: What is Notification No. 03/2023 - Integrated Tax (Rate) about?
Answer:
Notification No. 03/2023, issued on 28th February 2023, amends Notification No. 01/2017 - Integrated Tax (Rate). It updates GST rates for certain items under Schedules I, II, and III based on the GST Council's recommendation. Notably, it modifies tax rates on jaggery, khandsari sugar, rab, and pencil sharpeners.
🔗 Consult a GST Expert at Finodha
Q2: What GST rate applies to jaggery and khandsari sugar as per this update?
Answer:
Under Schedule I – 5%, jaggery of all types including cane jaggery (gur), palmyra jaggery, khandsari sugar, and rab—if pre-packaged and labelled—are taxable at 5%.
🧂 This ensures consistency and clarity in tax treatment for commonly consumed sweeteners.
💼 For GST return assistance: Click here
Q3: Are pencil sharpeners now taxed under a new GST slab?
Answer:
Yes. Pencil sharpeners have been moved to Schedule II – 12% as a newly inserted item (S. No. 186A).
✏️ This replaces their earlier categorization under Schedule III (18%), effectively reducing the tax rate on sharpeners.
📚 For school supply businesses, this is a favorable change.
🧾 GST Registration help: Register here
Q4: What does the change in Schedule III imply?
Answer:
Schedule III (18%) now includes an exception for pencil sharpeners. The amended entry (S. No. 302A) adds "[other than pencil sharpeners]", ensuring these are now taxed at 12% instead of 18%.
💼 This aligns with rationalization goals from the 50th GST Council meeting.
💬 Need compliance advice? Visit: GST Compliance Services
Q5: When did Notification No. 03/2023 come into effect?
Answer:
This notification came into effect on 1st March 2023. All mentioned rate changes apply from that date.
📅 Be sure to update your GST invoicing software accordingly!
💡 Need help with setup? Start your business
Q6: Why was Notification No. 01/2017 amended through this notification?
Answer:
The amendment ensures correct tax classification for widely used goods like jaggery and pencil sharpeners, aligning GST rates with current trade and consumption trends, as per the GST Council's recommendations.
📈 These amendments reduce confusion and promote better compliance.
🌐 Explore GST Professional Support
Q7: How can Finodha help businesses adapt to this GST notification?
Answer:
Finodha provides comprehensive GST services including registration, return filing, compliance, and business setup. From understanding amended rates to upgrading billing systems, Finodha ensures smooth compliance.
💼 Services include:
GST Return Filing: File Now
GST Compliance: Learn More
Digital Signature Certificate (DSC): Apply Here
Download PDF: Notification No. 03/2023 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
