Notification No. 07/2018 – Central Tax (Rate) Explained

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Notification No. 07/2018 - Central Tax (Rate): seeks to amend Notification No.2/2017-CGST (Rate).

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-sections (1) of section 11 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.2/2017-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. 674 (E), dated the 28th June, 2017, namely:-

In the said notification, -

(1) in the Schedule,

in S. No. 102, for the entry in column (3), the entry “Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]”, shall be substituted;

for S. No. 102A and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“102A	2302	De-oiled rice bran
102B	2306	Cotton seed oil cake”;

against S. No. 136A, in column (2), for the entry, the entry “7117” shall be substituted’;

in S. No. 137, in column (3), after the words “used in agriculture, horticulture or forestry” the words, “other than ghamella”, shall be added;

in S. No. 148, for the entry in column (3), for the entry against item number (v), the entry “Vibhuti”, shall be substituted;

after S. No. 150 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“151

Any chapter

“Parts for manufacture of hearing aids”;

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: - The principal notification No.2/2017-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. 674(E), dated the 28th June, 2017and last amended by Notification No. 42/2017 Central Tax(Rate) dated 14th November, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 1388 (E), dated the, 14th November, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 07/2018 – Central Tax (Rate)

Q1: What is Notification No. 07/2018 – Central Tax (Rate)?

Answer:
It is a GST amendment notification issued on 25 January 2018 updating exemption list under Notification 2/2017 07.

Q2: Which law empowers this notification?

Answer:
Section 11(1) of CGST Act, 2017 07.

Q3: Is cattle feed GST exempt?

Answer:
Yes, cattle feed and related products are exempt as clarified in amended S. No. 102 07.

Q4: Is de-oiled rice bran taxable?

Answer:
No. It is separately listed as exempt under S. No. 102A 07.

Q5: Is cotton seed oil cake exempt?

Answer:
Yes, under S. No. 102B 07.

Q6: What is “ghamella” and is it exempt?

Answer:
Ghamella (agricultural tool) was excluded from exemption under S. No. 137 07.

Q7: Is Vibhuti GST exempt?

Answer:
Yes, after substitution in S. No. 148 07.

Q8: Are hearing aid parts taxable?

Answer:
No, parts for manufacture of hearing aids are exempt 07.

Q9: Does exempt supply require GST registration?

Answer:
If only exempt supplies are made, registration may not be required (subject to Section 22).
Check GST Registration here:
👉 https://finodha.in/online-gst-registration/

Q10: Can ITC be claimed on exempt goods?

Answer:
No. ITC not allowed on exempt supplies as per Section 17(2).

Q11: Do exempt suppliers file GST returns?

Answer:
If registered, yes. Exempt supplies must be disclosed.
File returns here:
👉 https://finodha.in/gst-return-filing/

Q12: Why was de-oiled rice bran separated?

Answer:
To clarify classification and avoid tax disputes.

Q13: How does this affect agricultural businesses?

Answer:
Reduces GST burden and compliance cost.
Register MSME here:
👉 https://finodha.in/online-udyam-udyog-aadhar-msme-registration/

Q14: What compliance mistakes should be avoided?

Answer:
❌ Charging GST on exempt items
❌ Wrong HSN classification
❌ Claiming ITC on exempt goods
Need GST compliance help?
👉 https://finodha.in/gst-compliance/