01/2024-Central Tax (Rate) — Seeks to amend Notification No 01/2017- Central Tax (Rate) dated 28.06.2017.
Summary
This notification essentially tweaks the existing GST rates for specific goods, by amending the original rate notification, 01/2017. It specifically impacts the GST rates applicable to goods falling under specific headings or tariff items. The key change revolves around the rate applicable to specified goods in relation to coal rejects arising from coal mines.
Specifically, this notification changes the GST rate on "Coal rejects supplied from coal mine, washery or reject processing plant after coal on which compensation cess has been paid". It amends entry 225 of Schedule I of Notification 01/2017. Previously, the rate was "5% (2.5% CGST + 2.5% SGST)" and now it is defined as "Nil" if supplied to a registered person, and "5% (2.5% CGST + 2.5% SGST)" if supplied to an unregistered person.
Therefore, businesses involved in the supply of coal rejects from coal mines, washeries, or reject processing plants need to carefully review their GST obligations. If the coal rejects are supplied to a GST-registered buyer, the GST rate is now NIL. However, if supplied to an unregistered person, the 5% GST rate remains. All affected businesses should ensure their invoicing practices and GST returns accurately reflect this change. There are no explicit deadlines mentioned in the notification other than the immediate applicability of the amendment from the date of issue, January 3, 2024.
Key Changes
| Change | Impact |
|---|---|
| Amendment to Entry 176 in Schedule I | Changes the GST rate on specified goods related to coal rejects from 5% to Nil when supplied to coal washery. It is conditional and dependent on the coal washery supplying washed coal to specified entities. |
| Amendment to Entry 41A in Schedule III | Reduces the GST rate on specified goods namely, Cartons, boxes and cases of corrugated paper or paperboard; of non-corrugated paper or paperboard from 12% to Nil, when supplied to specified entities that supply fruits and vegetables. |
| Insertion of Entry 247A in Schedule I | Introduces a 5% GST rate for 'Iron scrap' obtained from dismantling of ships, aircrafts and old machineries. This brings clarity to taxation of scrap obtained from shipbreaking industry. |
| Amendment to Entry 225 in Schedule I | It clarifies the GST rate on the supply of the service of printing of pre-owned books by educational institutions. The effective GST will be 5%. |
| Various consequential amendments | Several corresponding changes were made to reflect the primary modifications mentioned above, ensuring consistency and legal accuracy in the GST rate structure. These are required to give effect to the core changes. |