𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗚𝗦𝗧 𝗥𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝗖𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 – 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼. 𝟮𝟰𝟳/𝟬𝟰/𝟮𝟬𝟮𝟱-𝗚𝗦𝗧 𝗦𝘂𝗯𝗷𝗲𝗰𝘁: This circular provides clarifications on GST rates and classifications for specific goods, in line with the decisions made during the 55th GST Council meeting.

𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆: Issued by the Ministry of Finance, Department of Revenue, Tax Research Unit (TRU) under the authority of Section 168(1) of the Central Goods and Services Tax Act, 2017.

𝗞𝗲𝘆 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: 𝟭. 𝗖𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗚𝗦𝗧 𝗥𝗮𝘁𝗲 𝗳𝗼𝗿 𝗣𝗲𝗽𝗽𝗲𝗿 (𝗛𝗦 𝗖𝗼𝗱𝗲 𝟬𝟵𝟬𝟰): All forms of pepper (green, white, black) are classified under HS Code 0904. The applicable GST rate is 5%. Exemption: The supply of dried pepper by agriculturists is exempt from GST.

𝟮. 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗖𝗲𝘀𝘀 𝗼𝗻 𝗦𝗨𝗩𝘀: Clarifies the effective date of changes in compensation cess on SUVs. Before the 50th GST Council meeting: A 22% cess applied to certain SUVs. After the 50th GST Council meeting: Revised criteria were introduced based on engine capacity, length, and ground clearance. The circular confirms that these changes, as per Notification No. 03/2023, are effective from July 26, 2023. Ground clearance is defined as ground clearance in an unladen condition.

𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻: Any difficulties in implementing these clarifications should be reported to the Board. 𝗢𝗳𝗳𝗶𝗰𝗶𝗮𝗹 𝗗𝗲𝘁𝗮𝗶𝗹𝘀: 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼.: 247/04/2025-GST 𝗙𝗶𝗹𝗲 𝗡𝗼.: 19354/2/2025-TO(TRU-II)-CBEC 𝗗𝗮𝘁𝗲: February 14, 2025 𝗜𝘀𝘀𝘂𝗲𝗱 𝗯𝘆: Limatula Yadeh, Joint Secretary (TRU-I)

𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: Provides clarity on GST classification and rates, ensuring uniform application across jurisdictions. Reinforces the GST Council’s role in recommending changes and the government’s role in implementing them. Highlights the importance of effective dates, especially regarding the compensation cess on SUVs.