Notification No. 25/2018 – Central Tax (Rate) Explained

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Notification No. 25/2018 - Central Tax (Rate): Seeks to further amend notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 to exempt GST on goods as per recommendations of the GST Council in its 31st meeting.

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 Central Goods and Services Tax 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, in the Schedule, -

for S. No. 43A and the entries relating thereto, the following serial numbers and entries shall be substituted, namely: -

“43A	0710	Vegetables (uncooked or cooked by steaming or boiling in water), frozen
43 B	0711	Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption”;

after S. No. 121 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

“121 A

4904 00 00

Music, printed or in manuscript, whether or not bound or illustrated”;

after S. No. 152 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

“153

Any Chapter

Supply of gift items received by the President, Prime Minister, Governor or Chief Minister of any State or Union territory, or any public servant, by way of public auction by the Government, where auction proceeds are to be used for public or charitable cause”.

2. This notification shall come into force on the 1^st January, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No. 2/2017 - Central Tax (Rate), dated the 28^th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G. S. R. 674(E), dated the 28^th June, 2017 and last amended by notification No. 19/2018 - Central Tax (Rate), dated the 26^th July, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G. S. R. 693(E), dated the 26^th July 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 25/2018 – Central Tax (Rate)

Q1: What is Notification No. 25/2018 – Central Tax (Rate)?

Answer:
It is a GST notification issued on 31 December 2018 to amend the exemption list under Notification 2/2017 and add new GST-free goods.

Q2: From when is Notification 25/2018 applicable?

Answer:
It is effective from 1 January 2019.

Q3: Which vegetables are exempt under this notification?

Answer:
Frozen vegetables (HSN 0710)
Provisionally preserved vegetables (HSN 0711)

Q4: Are fresh vegetables covered under this notification?

Answer:
Fresh vegetables were already exempt earlier. This notification specifically added frozen and preserved vegetables.

Q5: Is GST applicable on frozen peas after this notification?

Answer:
No. Frozen peas fall under HSN 0710 and are GST-exempt.

Q6: What is meant by provisionally preserved vegetables?

Answer:
Vegetables preserved in brine or chemicals for storage, but not ready for direct consumption.

Q7: Are music books taxable under GST?

Answer:
Printed or manuscript music under HSN 4904 is exempt from GST after this notification.

Q8: Does the exemption apply to digital music files?

Answer:
No. The exemption applies only to printed or manuscript music, not digital downloads.

Q9: What is the exemption on government auctioned gifts?

Answer:
Gifts received by top officials and auctioned for charitable or public purposes are GST-free.

Q10: Is GST charged if auction proceeds are kept by the government?

Answer:
No, as long as the proceeds are used for public or charitable causes, the supply remains exempt.

Q11: Under which law was this notification issued?

Answer:
Under Section 11(1) of the CGST Act, 2017, which allows the government to grant GST exemptions.

Q12: Do businesses dealing in exempt goods need GST registration?

Answer:
If a business deals only in exempt goods, GST registration may not be required, subject to conditions.
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