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Notification No. 09/2023 Explained: GST Rate Update

by Shakshi Bharti | Jan 21, 2024 | GST, 2023 Notifications, Central Tax (Rate) 2023 Notifications, Notifications | 0 comments

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Important Keyword: F. No. 190354/133/2023-TRU, Notification No. 09/2023- Central Tax (Rate), Section 9(1) CGST Act 2017, Section 15(5) CGST Act 2017, Notification No.1/2017-Central Tax (Rate), Notification No. 03/2023 –Central Tax (Rate),

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[F. No. 190354/133/2023-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, dated 26^th July, 2023

Notification No. 09/2023 - Central Tax (Rate): Seeks to amend No. 01/2017- Central Tax (Rate) to implement the decisions of 50th GST Council.

[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 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 673(E), dated the 28^thJune, 2017, namely: -

In the said notification, -

in Schedule I –2.5%,
1. after S. No. 99A and entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(1)	(2)	(3)
"99B.	1905	Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion";

2. after S. No. 108 and entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(1)	(2)	(3)
"108A.	2309	Fish soluble paste";

3. after S. No. 156A and entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(1)	(2)	(3)
"156B.	2619	Linz-Donawitz (LD) Slag ";

4. after serial number 218A and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(1)	(2)	(3)
"218AA.	56050020	Imitation zari thread or yarn known by any name in trade parlance";

B. in Schedule II–6%, against S. No. 137, for the entry in column (3), the entry “Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal, other than- (i) real zari thread (gold) and silver thread combined with textile thread (ii) imitation zari thread or yarn known by any name in trade parlance” shall be substituted;

C. in Schedule III–9%,

against S. No. 16, in column (3), for the words “toasted bread and similar toasted products”, the words “toasted bread and similar toasted products, un- fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion” shall be substituted;
against S. No. 28, for the entry in column (3), the entry “Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel, other than Linz-Donawitz (LD) slag” shall be substituted;

2. This notification shall come into force on 27^th July, 2023.

(Nitish Karnatak)
Under Secretary to the Government of India

Note: - The principal notification No.1/2017-Central Tax (Rate), dated the 28^thday 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 28^th day of June, 2017 and was last amended by notification No. 03/2023 –Central Tax (Rate) dated the 28^th February, 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 147(E), dated the 28^thFebruary, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 09/2023 – Central Tax (Rate)

Q1: What is Notification No. 09/2023 – Central Tax (Rate)?

Answer:
Notification No. 09/2023 – Central Tax (Rate), dated 26th July 2023, introduces amendments to Notification No. 01/2017 to revise GST rates for select goods including snack pellets, fish paste, LD slag, and imitation zari threads. It aligns with the 50th GST Council's recommendations and came into effect from 27th July 2023.

Q2: What new products are added under Schedule I (2.5% GST)?

Answer:
The following entries have been newly inserted under Schedule I:
99B: Un-fried or un-cooked snack pellets via extrusion (HS Code 1905)
108A: Fish soluble paste (HS Code 2309)
156B: Linz-Donawitz (LD) Slag (HS Code 2619)
218AA: Imitation zari thread or yarn (HS Code 56050020)

Q3: What is the change in Schedule II (6% GST) under this notification?

Answer:
The description under S. No. 137 is modified. It now excludes imitation zari threads and specifies GST applicability only to metallised yarn, excluding real zari (gold/silver) and imitation zari threads.

Q4: What changes are made to Schedule III (9% GST)?

Answer:
(i) S. No. 16 now includes “un-fried or un-cooked snack pellets manufactured by extrusion” alongside toasted bread.
(ii) S. No. 28 modifies the entry to exclude LD slag from 9% GST; LD slag is now taxed at 2.5%.

Q5: What is Linz-Donawitz (LD) Slag and why is it reclassified?

Answer:
LD Slag is a by-product from steel manufacturing (converter process). Its reclassification from 9% to 2.5% under Schedule I reduces the GST burden, likely to promote recycling and sustainable usage.

Q6: What is the significance of including imitation zari thread under 2.5% GST?

Answer:
Including imitation zari yarn (popular in traditional garments) at a concessional rate of 2.5% encourages textile artisans and small traders by lowering input costs.

Q7: When do the changes under Notification No. 09/2023 become effective?

Answer:
All changes as notified under Notification No. 09/2023 – Central Tax (Rate) come into force from 27th July 2023.

Q8: How does this notification affect snack manufacturers?

Answer:
Snack pellet manufacturers using extrusion processes can now benefit from a lower GST rate of 2.5%, which reduces the tax impact on processed food production.

Q9: Where can I get professional GST guidance for applying this notification?

Answer:
You can consult verified GST Experts via Finodha at www.Finodha.in or check GST Compliance Services at: https://finodha.in/gst-compliance/.

Q10: How do these changes align with the GST Council’s 50th Meeting?

Answer:
The amendments aim to simplify rate structures and rationalize classifications for textile goods, food products, and industrial by-products, based on decisions of the 50th GST Council Meeting.