GST Council Issues Clarifications on GST Rates and Classification of Certain Goods

The GST Council has issued clarifications on the GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022. The clarifications relate to the classification of “Rab”, which is stated to be appropriately classifiable under heading 1702, attracting GST rate of 18% (S. No. 11 in Schedule III of notification No. 1/2017-Central Tax (Rate), dated the 28th June, 2017). Also, it has been clarified that by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni shall be exempt under GST vide S. No. 102C of schedule of notification No. 2/2017- Central Tax (Rate), dated 28.06.2017. The Circular also includes clarification regarding ‘Carbonated Beverages of Fruit Drink’ or ‘Carbonated Beverages with Fruit Juice’ stating that the goods with the said description attract GST at the rate of 28% and Compensation Cess at the rate of 12%. [Circular No. 189/01/2023-GST dated 13.01.2023]