GST Update: Key Amendments in Tax Rates

Jaggery and Khandsari Sugar: Schedule I (2.5%): Revised entry for S. No. 91A includes "Jaggery of all types, including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labelled."

New Inclusion in Schedule II (6%): S. No. 186A and entries: "8214 Pencil sharpeners" are added to the list attracting a 6% tax rate.

Schedule III (9%): Amendment for S. No. 302A: Addition of "[other than pencil sharpeners]" at the end of column (3).

Effective Date: The changes come into effect from 1st March 2023.

Objective: Provide clarity and specificity in tax rates for items like Jaggery, Khandsari Sugar, Rab, and introduce a distinct tax rate for pencil sharpeners.

Legislative Background: The amendment builds upon the original notification No.1/2017-Central Tax (Rate) and incorporates changes made up to the 30th December 2022 (Notification No. 12/2022 –Central Tax).

Note: For detailed information, refer to the official gazette for Notification No.1/2017-Central Tax (Rate).