Important Keyword: Notification No. 14/2022 – Central Tax (Rate), GST amendment 2022, Reverse charge mechanism GST, Essential oils GST notification, Central Tax Rate amendment 2022,
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[F. No. CBIC-190354/316/2022-TRU Section-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 30th December, 2022
Notification No. 14/2022 - Central Tax (Rate): Seeks to amend notification No. 4/2017- Central Tax (Rate)
[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 (3) of section 9 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, Ministry of Finance (Department of Revenue), No. 4/2017- 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. 676(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, for S. No. 3A and the entries relating thereto, the following entries shall be substituted, namely: -
| (1) | (2) | (3) | (4) | (5) |
| " 3A. | 33012400, 33012510, 3301 25 20, 3301 25 30, 3301 25 40, 3301 25 90 | Following essential oils other than those of citrus fruit namely: - (a)Of peppermint (Menthapiperita); (b)Of other mints : Spearmint oil (ex-Mentha spicata), Water mint-oil (ex-Mentha aquatic), Horsemint oil (ex-Mentha Sylves tries), Bergament oil (ex-Mentha citrate), Mentha arvensis. | Any unregistered person | Any registered person" |
2. This notification shall come into force with effect from the 1st day of January, 2023.
(Vikram Vijay Wanere)
Under Secretary
Note: - The principal notification No. 4/2017-Central 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. 676(E), dated the 28thJune, 2017 and was last amended by notification No. 10/2021-Central Tax (Rate) dated the 30th September, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 695(E), dated the 30th September, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 14/2022 - Central Tax (Rate)
Q1: What is Notification No. 14/2022 – Central Tax (Rate)?
Answer:
Notification No. 14/2022 – Central Tax (Rate), issued on 30th December 2022, amends Notification No. 4/2017 – Central Tax (Rate). It specifically substitutes entry 3A relating to essential oils under the reverse charge mechanism (RCM). The changes apply from 1st January 2023.
Q2: Which products are covered under this amendment?
Answer:
The notification applies to essential oils (other than citrus fruit oils), specifically:
Peppermint oil (Mentha piperita)
Spearmint oil (Mentha spicata)
Water mint oil (Mentha aquatic)
Horsemint oil (Mentha sylvestries)
Bergament oil (Mentha citrate)
Mentha arvensis
Q3: Who is liable to pay GST under Notification No. 14/2022 – Central Tax (Rate)?
Answer:
As per the amendment, if an unregistered person supplies these essential oils to any registered person, the recipient (registered person) is liable to pay GST under the Reverse Charge Mechanism (RCM).
Q4: When does Notification No. 14/2022 – Central Tax (Rate) come into effect?
Answer:
The changes introduced by this notification are effective from 1st January 2023.
Q5: How does this notification impact essential oil traders and buyers?
Answer:
Unregistered suppliers: Can continue supplying without charging GST.
Registered buyers: Must pay GST under RCM and can claim Input Tax Credit (ITC), subject to compliance.
This ensures better tax accountability in the essential oils sector.
Q6: Why was this amendment introduced?
Answer:
The amendment aims to tighten GST compliance in the essential oils market, which is often fragmented with small and unregistered suppliers. By shifting GST liability to registered buyers, the government ensures smoother tax collection and transparency.
Q7: What was the last amendment to Notification No. 4/2017 before this?
Answer:
The last amendment before this was made by Notification No. 10/2021 – Central Tax (Rate) dated 30th September 2021.
Q8: How can businesses ensure compliance under this notification?
Answer:
Businesses dealing in essential oils must:
Verify whether suppliers are registered/unregistered.
Discharge GST liability under RCM when buying from unregistered persons.
Report such transactions properly in GST Return Filing.
👉 You can seek professional help from GST Experts at Finodha for hassle-free compliance.
Q9: What should MSMEs dealing in essential oils keep in mind?
Answer:
MSMEs in this sector should:
Consider GST Registration if turnover exceeds the threshold.
Maintain proper invoices and purchase records.
Ensure timely filing of GST Returns to avail ITC.
Helpful resources:
Online GST Registration
GST Return Filing
MSME Registration
Q10: Where can I get expert help for compliance under Notification No. 14/2022 – Central Tax (Rate)?
Answer:
For professional guidance on GST compliance, registration, and return filing, you can consult trusted GST Professionals at Finodha.
✅ Summary:
Notification No. 14/2022 – Central Tax (Rate) updates RCM applicability on essential oils supplied by unregistered persons to registered persons. Effective from 1st Jan 2023, this amendment ensures better GST compliance and transparency in the essential oils sector.
Download PDF: Notification No. 14/2022 - Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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