Important Keyword: Notification No. 17/2023 - Union Territory Tax (Rate), GST molasses rate, millet flour GST, spirits GST amendment, GST UT Notification 17/2023, GST rate October 2023, millet flour GST, molasses GST, GST amendment by Council, GST Schedule update,
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[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 - Union Territory Tax (Rate): Seeks to amend Notification No 01/2017- 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 7 of the UTGST Act, 2017 (14 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-Union Territory 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. 710(E)., dated the 28thJune, 2017, namely:-
In the said notification, -
A. in Schedule I – 2.5%, -
i. 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”; |
ii. 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%,
i. 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;
ii. 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- Union Territory 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. 710(E)., dated the 28th June, 2017 and was last amended by notification No. 11/2023– Union Territory 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. 713(E), dated the 29th September, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 17/2023 - Union Territory Tax (Rate)
Q1: What is Notification No. 17/2023 - Union Territory Tax (Rate) about?
Answer: This notification, issued on 19th October 2023, amends Notification No. 01/2017 - UT Tax (Rate). It introduces new entries in GST rate schedules concerning molasses, millet flour food products, and spirits for industrial use. The changes came into effect on 20th October 2023.
Q2: What new items have been added to Schedule I (2.5% GST)?
Answer: Two new items were added:
🧪 Molasses (HS Code 1703) – New entry as S. No. 92A
🌾 Food preparations of millet flour (minimum 70% millet, powder form, pre-packaged and labelled) – New entry as S. No. 96A
Q3: What update was made in Schedule III (9% GST)?
Answer: The following changes were made:
The description under S. No. 13 now includes millet flour products with 70% millet.
📦 A new entry under S. No. 25A was introduced for Spirits for industrial use (HS Code 2207 10 12).
Q4: What was removed from Schedule IV (14% GST)?
Answer: S. No. 1 and its related entries were omitted entirely, implying a shift or rationalization in the higher tax bracket. 🧾
Q5: When do these amendments take effect?
Answer: All changes notified under Notification No. 17/2023 - UT Tax (Rate) became effective from 20th October 2023.
Q6: Why were these changes recommended?
Answer: These GST rate updates were made based on the recommendations of the GST Council, aiming to:
✅ Promote millet consumption (aligned with India's millet promotion campaign)
✅ Clarify GST treatment on molasses and industrial spirits
✅ Rationalize higher GST slabs (like 14%)
Q7: How will this impact GST compliance for businesses?
Answer: Businesses trading in molasses, millet-based packaged foods, and industrial spirits must:
📌 Update their product classifications and tax rates
📌 Ensure accurate invoicing and return filing
📌 Stay GST-compliant via GST Filing Services
Q8: Is there any linkage to GST registration requirements?
Answer: Yes. If your turnover exceeds the threshold or you deal in taxable supplies under the updated entries, timely GST Registration is mandatory.
Q9: Where can I find professional help for GST classification & compliance?
Answer: Connect with certified GST experts at Finodha.in for assistance in adapting to the latest changes and ensuring hassle-free GST compliance.
📚 Summary
Notification No. 17/2023 - UT Tax (Rate) brings targeted changes to GST schedules to boost millet usage, standardize industrial spirits taxation, and optimize GST rate structures. Being aware of these changes is vital for GST-registered businesses, especially in the food processing and chemical sectors.
🏁 Conclusion
Whether you're a trader, manufacturer, or business owner, staying aligned with latest GST notifications like 17/2023 ensures smooth compliance. For support on registration, return filing, or GST transition, rely on trusted advisors like Finodha’s GST Experts.
Download PDF: Notification No. 17/2023 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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