Notification No. 04/2023 - UTT (R) GST Exemption for Rab

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Notification No. 04/2023 - Union Territory Tax (Rate): Seeks to Amend Notification no. 2/2017-Union Territory Tax (Rate), dated 28.06.2017.

[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 8 of the UTGST Act, 2017 (14 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.2/2017- Union Territory (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E), dated the 28^th June, 2017, namely:-

In the said notification, in the Schedule, against S. No. 94, in Column (3), after the item (ii) and the entries relating thereto, the following item and entry shall be inserted, namely: -

“(iii) Rab, other than pre-packaged and labelled”.

2. This notification shall come into force on the 1^st day of March, 2023.

(RAJEEV RANJAN)
Under Secretary

Note: - The principal notification No.2/2017-Union Territory 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. 711(E), dated the 28^th June, 2017, and was last amended by notification No.13/2022–Union Territory Tax (Rate), dated the 30^th December, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 921(E), dated the 30^th December, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 04/2023 - Union Territory Tax (Rate)

✅ Q1: What is Notification No. 04/2023 - Union Territory Tax (Rate)?

Answer:
Notification No. 04/2023 - Union Territory Tax (Rate), issued on 28th February 2023, introduces an amendment to Notification No. 2/2017. It adds “Rab, other than pre-packaged and labelled” to the list of goods attracting 0% GST rate (exempted supply) under S. No. 94.
📅 Effective from 1st March 2023, this update ensures non-packaged Rab remains GST-exempt.
🍯 Need GST exemption classification support? Consult Finodha GST Professionals.

✅ Q2: What is “Rab” and how is it treated under GST?

Answer:
“Rab” is a thickened concentrated form of sugarcane juice, used like jaggery in many parts of India. Under this notification:
Rab that is not pre-packaged and labelled is exempt from GST
Pre-packaged & labelled Rab will still attract GST (typically at 5% or 18%, depending on classification)
🧾 Need classification help for agro-products? Get expe

✅ Q3: Which item in the GST schedule was amended by Notification No. 04/2023?

Answer:
S. No. 94 of the Schedule to Notification No. 2/2017 was amended. It now includes:
“(iii) Rab, other than pre-packaged and labelled”
This means only unpackaged Rab qualifies for 0% GST rate, while packed products are taxable.
📦 Unsure if your product needs GST? Check with Finodha’s Registration Experts.

✅ Q4: What is the effective date of this amendment?

Answer:
The notification comes into force from 1st March 2023, and applies across all Union Territories under the UTGST regime.
📈 For timely GST return filing, visit Finodha GST Return Services.

✅ Q5: Who will benefit from this GST exemption on Rab?

Answer:
✅ Farmers, small traders, sweet manufacturers, and local jaggery units that sell Rab in loose or non-packaged form.
It encourages the unorganised sector and supports traditional Indian sweeteners.
🌿 Planning to start a jaggery business? Use Business Setup Services for smooth legal entry.

✅ Q6: What is the difference between "pre-packaged & labelled" and "unpackaged" under GST?

Answer:
Under GST:
Pre-packaged & labelled goods = Sold in sealed packaging with name, price, brand = taxable
Unpackaged goods = Sold loosely, without branding or MRP label = tax-exempt if listed in Notification No. 2/2017
📚 For clarity on this distinction, connect with Finodha GST Experts.

✅ Q7: Which Act empowers the government to make this change?

Answer:
The amendment is made using Section 8(1) of the UTGST Act, 2017, based on the GST Council’s recommendations, ensuring GST benefits reach grassroots suppliers and farmers.
🧠 Need to understand GST laws for your region? Ask Finodha Compliance Team.

✅ Q8: Is this change applicable only to Union Territories?

Answer:
Yes. This notification is issued under the Union Territory GST (Rate) framework, applicable to all UTs such as:
Lakshadweep
Chandigarh
Dadra & Nagar Haveli
Andaman & Nicobar Islands, etc.
📍 Register your UT business easily with Private Limited Registration or OPC.

✅ Q9: How can small Rab producers stay compliant with GST?

Answer:
✔️ Steps for compliance:
Determine if your Rab is pre-packaged and labelled
Maintain records of exempt vs. taxable supply
File GST returns on time (even NIL returns)
Seek exemption confirmation from a GST professional
📝 Need help filing returns or interpreting GST circulars? Explore Finodha GST Return Filing.

✅ Q10: Are there any similar recent changes in GST for agricultural goods?

Answer:
Yes. The GST Council in multiple recent meetings has clarified exemptions for several traditional/agro products like:
Jaggery
Coarse grains
Loose flour
Paneer (when unpackaged)
🧮 For full exemption lists and strategic tax planning, visit Finodha GST Compliance.