CBIC has issued various clarifications regarding GST rates and the classification of certain goods, including the following key issues, in GST Circular 189/01/2023:
1. No GST will be levied on by-products of Dal/Pulses milling, such as Chilka, Khanda, and Churi/Chuni, beginning January 1, 2023.
2. ‘Carbonated Beverages of Fruit Drink’ or ‘Carbonated Beverages with Fruit Juice’ would fall under HSN 2202 99 and would be subject to 28% GST and a 12% Compensation Cess.
3. Snack pellets (such as ‘fryums’) manufactured by extrusion are appropriately classified under tariff item 1905 90 30 and taxable at 18%; and
4. Compensation Cess is to be levied at a rate of 22% on motor vehicles falling under heading 8703 that meet certain specifications of SUVs, i.e. the engine capacity exceeds 1,500 cc, the length exceeds 4,000 mm, and the ground clearance is 170 mm or higher.
CBIC GST Circular 189/01/2023 dt. 13/01/2023: Clarification regarding GST rates and classification of certain goods