Important Keyword: Notification No. 17/2023 – Central Tax (Rate), GST Millet Flour Rate, GST Molasses, GST Industrial Spirits, Schedule Amendments, Finodha GST Compliance,
Words: 1159; Read time: 6 minutes.
Table of Contents
[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 19th October 2023
Notification No. 17/2023 - Central Tax (Rate): Seeks to amend Notification No 01/2017- Central Tax (Rate) dated 28.06.2017.
GST: [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 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, Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28thJune, 2017, namely:-
In the said notification, -
(A) in Schedule I – 2.5%, -
- after S. No. 92 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:
-
| (1) | (2) | (3) |
| “92A. | 1703 | Molasses”; |
- after S. No. 96 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:
-
| (1) | (2) | (3) |
| “96A. | 1901 | Food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled”; |
(B) in Schedule III – 9%,
- against S. No. 13, in column (3), for the words and figures “of heading 1905”, the words and figures “of heading 1905; food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled ” shall be substituted;
- after S. No. 25 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -
| (1) | (2) | (3) |
| “25A. | 2207 10 12 | Spirits for industrial use”; |
(C) in Schedule IV – 14%, S. No. 1 and the entries relating thereto shall be omitted.
2. This notification shall come into force with effect from the 20th day of October, 2023.
Vikram Wanere
Under Secretary
Note: - The principal notification No. 1/2017-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. 673(E)., dated the 28th June, 2017 and was last amended by notification No. 11/2023– Central Tax (Rate), dated the 29th September, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E), dated the 29th September, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 17/2023 – Central Tax (Rate)
Q1: What is Notification No. 17/2023 – Central Tax (Rate) about?
Answer:
This notification, dated 19th October 2023, amends Notification No. 01/2017 – Central Tax (Rate). It introduces specific changes in tax rates on select goods like molasses, millet flour preparations, and industrial-use spirits effective from 20th October 2023.
Q2: What new item was added to Schedule I (2.5%) under this notification?
Answer:
“Molasses” (HS Code: 1703) was added as S. No. 92A in Schedule I, which attracts a GST rate of 2.5%. This aligns the tax treatment of this sugar industry by-product with policy recommendations.
🌾 Curious about sugarcane processing or by-products? Learn how GST compliance supports agri-industries: https://finodha.in/gst-compliance/
Q3: Are there any updates related to millet-based food items?
Answer:
Yes ✅. Millet flour preparations (in powder form, containing at least 70% millets, pre-packaged and labelled) were added under S. No. 96A in Schedule I (2.5%). Additionally, Schedule III (9%) under S. No. 13 was amended to include these millet preparations as well.
🌾 Get your millet-based product GST-registered online: https://finodha.in/online-gst-registration/
Q4: What amendment was made to Schedule III (9%) for spirits?
Answer:
A new entry—S. No. 25A with HSN 2207 10 12—was added for “Spirits for industrial use,” taxed at 9% GST. This separates industrial spirits from those used for consumption purposes.
💡 Need help differentiating inputs for industrial vs consumable purposes? Consult a GST expert: www.Finodha.in
Q5: What was omitted from Schedule IV (14%) under this notification?
Answer:
S. No. 1 of Schedule IV and its associated entries have been omitted, effectively removing certain goods (likely previously taxed at 14%) from that rate schedule.
📃 For historic GST rates or classification help, visit: https://finodha.in/gst-return-filing/
Q6: When does Notification No. 17/2023 become effective?
Answer:
It is applicable from 20th October 2023. Taxpayers must account for the new GST rates from this date onward for relevant supplies.
📅 Stay compliant and avoid late filings. File your GST returns on time: https://finodha.in/gst-return-filing/
Q7: How does this notification impact food entrepreneurs and agribusinesses?
Answer:
Entrepreneurs selling millet-based products now benefit from a lower GST slab (2.5%/9%). This promotes millet consumption and aligns with government policy to boost nutrient-rich food production.
🚀 Ready to launch your millet brand? Register your business hassle-free: https://finodha.in/setup-business/
Q8: What are the implications for industrial users of spirits under GST?
Answer:
Industrial users must ensure correct classification (now listed under S. No. 25A of Schedule III) to avoid overpayment or underpayment of GST.
🧾 Seek expert classification advice for industrial inputs: https://finodha.in/gst-compliance/
Q9: Is e-invoicing applicable for these products too?
Answer:
Yes, if your business turnover crosses ₹5 Cr, e-invoicing becomes mandatory. Ensure compliance across all your product segments, including newly listed items.
🧾 Enable digital invoicing today with a Digital Signature Certificate: https://finodha.in/online-dsc-digital-signature-certificate/
Q10: What should a manufacturer or trader do next?
Answer:
Immediately update accounting and invoicing software to reflect the revised HSN codes and rates. Also, communicate the new rates to your procurement and sales teams.
💼 Need full GST registration and rate update services? Visit: https://finodha.in/gst-compliance/
📌 Summary Recap
Notification No. 17/2023 – Central Tax (Rate) introduces key updates:
- Adds molasses (1703) at 2.5%
- Includes millet flour preparations at 2.5% and 9%
- Adds industrial-use spirits at 9%
- Removes item from 14% slab
💬 Still confused about implementation? Hire a GST professional through www.Finodha.in
Download PDF: Notification No. 17/2023 – Central Tax (Rate)
17-2023-CTR-engDownload
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
