GST Rate Clarifications on Various Goods – CBIC Circular No. 200/12/2023-GST
<h3><strong>Key Highlights from CBIC Circular No. 200/12/2023-GST</strong></h3><p>On <strong>August 1, 2023</strong>, the <strong>Central Board of Indirect Taxes and Customs (CBIC)</strong> issued <strong>Circular No. 200/12/2023-GST</strong>, clarifying GST rates for <strong>various goods based on the recommendations of the 50th GST Council Meeting held on July 11, 2023</strong>. This circular also <strong>regularizes past transactions</strong> where businesses faced classification uncertainties.</p><h3><strong>1. GST Reduction for Uncooked Snack Pellets</strong></h3><ul><li>Previously taxed at <strong>18%</strong>, <strong>uncooked/un-fried extruded snack pellets</strong> (e.g., fryums) will now attract <strong>5% GST</strong> under <strong>HSN 1905</strong>.</li><li>The reduced rate is <strong>effective from July 27, 2023</strong>.</li><li>Past cases before this date are <strong>regularized without any penalties</strong>.</li></ul><h3><strong>2. GST Rate on Fish Soluble Paste</strong></h3><ul><li>Earlier taxed at <strong>18%</strong>, the GST on <strong>fish soluble paste (HSN 2309)</strong> has been <strong>reduced to 5%</strong>, effective <strong>July 27, 2023</strong>.</li><li>Past tax disputes are <strong>regularized on an "as is" basis</strong>.</li></ul><h3><strong>3. Regularization of GST on Desiccated Coconut</strong></h3><ul><li>To resolve confusion regarding <strong>HSN 0801</strong>, CBIC has <strong>regularized all tax treatments</strong> for desiccated coconut for the period <strong>July 1, 2017 – July 27, 2017</strong>.</li></ul><h3><strong>4. Biomass Briquettes – GST Regularization</strong></h3><ul><li>Earlier classification issues regarding <strong>biomass briquettes</strong> have been settled by <strong>regularizing tax treatment for the period July 1, 2017 – October 12, 2017</strong>.</li></ul><h3><strong>5. Raw Cotton Supplied to Cooperatives – 5% GST on Reverse Charge Basis</strong></h3><ul><li>Supply of <strong>raw cotton and kala cotton</strong> from <strong>agriculturists to cooperatives</strong> is now confirmed as <strong>taxable at 5% under reverse charge</strong>.</li><li>Past transactions before this clarification are <strong>regularized without penalties</strong>.</li></ul><h3><strong>6. GST Rate Cut for Imitation Zari Thread/Yarn</strong></h3><ul><li>Previously taxed at <strong>12%</strong>, GST on <strong>imitation zari thread (Kasab) under HSN 5605</strong> has been <strong>reduced to 5%</strong>.</li><li>Past cases before July 27, 2023, are <strong>regularized without penalties</strong>.</li></ul><h3><strong>7. Areca Leaf Plates & Cups – Past Tax Regularization</strong></h3><ul><li>GST issues related to <strong>areca leaf plates and cups</strong> are <strong>regularized for transactions before October 1, 2019</strong>.</li></ul><h3><strong>8. GST Clarification on Medical Implants (HSN 9021)</strong></h3><ul><li>Before <strong>July 18, 2022</strong>, GST rates on <strong>trauma, spine, and arthroplasty implants</strong> under <strong>HSN 9021</strong> were unclear due to <strong>dual tax rates (5% and 12%)</strong>.</li><li>A uniform <strong>5% GST rate</strong> has now been confirmed for all such implants.</li><li>No <strong>refunds</strong> will be given for past payments made at <strong>12% GST</strong>.</li></ul><h3><strong>9. No Refunds for Higher Past GST Payments</strong></h3><ul><li>If businesses <strong>overpaid GST before the clarification</strong>, <strong>no refunds</strong> will be granted for these cases.</li><li><a href="https://cms.plasament.com/storage/chirag-singla/circular-no-12-2023.pdf">circular-no-12-2023</a><br> </li></ul>