Latest GST News, Information, Notifications & Announcements-2023

On 28th February 2023, the food central tax rate notifications and the compensation cess rate notifications were announced by the Central Board of Indirect Taxes and Customs (CBIC). Those rate changes were announced at the 49th GST Council meeting held on the 18th of February 2023. All the revisions relating to the GST rate changes shall be effective from 1st March 2023. 

Rab, also called liquid jaggery, sold loose or without pre-packaging is exempt from GST under Notification No. 04/2023-Central Tax (Rate). As a result of this change, Rab/Liquid jaggery now has a GST rate of nil for loosely sold Rab. Furthermore, the GST rate on pre-packaged and labelled Rab is from 18% to 5% as per Notification No. 03/2023-Central Tax (Rate).

As per Notification No. 03/2023- Central Tax (Rate) has changed the GST rate on pencil sharpeners from 18% to 12% by ensuring its re-classification under HSN code 8214. Furthermore, this change has taken effect from 1st March 2023. 

The GST Council recommended taxing services provided by courts and tribunals under the reverse charge mechanism in its 49th meeting. Accordingly, Notification No. 13/2017 was revised into Notification No. 02/2023-Central Tax (Rate) to include courts and tribunals in its scope.

On 28th February 2023, the government also revised Notification No. 01/2023-Central Tax (Rate), extending GST exemption to another service. As an educational institution, any board, authority, or body set up by the Central or State Governments, including the National Testing Agency (NTA), will conduct entrance examinations. Only such services will be considered for exemption, not any other. 

A final CBIC notification, 01/2023-Compensation Cess (Rate), revises Notification No. 1/2017- Compensation Cess. (Rate), dated 28th June 2017. As a result, coal rejects sold to a coal washery or generated by a coal washery which does not qualify for a tax credit are exempt from cess. The exemption applies to coal rejects supplied to coal washeries in addition to coal washeries' supplies.

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