GST Rate Changes - January 2022

Official Notification: The Central Government, in accordance with CGST Act, 2017, amends GST rates based on Council recommendations.

Amendments in Notification: Alterations in the notification No. 1/2017-Central Tax (Rate), dated June 28, 2017.

Schedule I - 2.5%: Changes in specific entries: S. No. 2: Modified entry for certain products like 0303, 0304, etc. S. No. 9: Revised entry for products like Yoghurt, Cream, etc. S. No. 127: Substituted entry for Dolomite. New entries at S. No. 186A and 186B for specific products.

Schedule II - 6%: Adjustments in entries: S. No. 15: Substituted entry for dried nuts. S. No. 41A: Inserted entry for Tender coconut water with specific brand conditions.

Effective Date: Amendments effective from January 1, 2022. Product Definitions: Detailed descriptions provided for each amended entry. Introduction of conditions for specific products.

Legislative Background: Aligns with the ongoing effort to refine and clarify GST classifications. Official Statement: Rajeev Ranjan, Under Secretary to the Government of India, issues the directive.

Impact on Businesses: Businesses dealing with the revised product categories need to adhere to the updated GST rates and conditions starting the new year.

Compliance Annexure: Conditions specified in the Annexure for actionable claims or enforceable rights related to brand names.

Consumer Consideration: Consumers may observe changes in pricing for affected goods and services.