Government notifies reduction of GST rates on Rab and Pencil Sharpener recommended by the GST Councils in its 49th meeting
The GST Council’s 49th meeting was held in Delhi on February 18, 2023 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
The GST Council had recommended to reduce the GST rates on ‘Rab’ from 18% to 5% if sold prepackaged,Nil – if sold otherwiseand on ‘Pencil Sharpener’ from 18% to 12%.
Accordingly, CBIC has notifiedthe amendmentsin Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 vide Notification No. 3/2023-Central Tax (Rate) dated February 28, 2023 , in order to align with recommendations of the 49th GST Council Meeting.
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Schedule I – 2.5% |
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SI. No. |
Chapter / Heading / Sub-Heading / Tariff Item |
Existing Entry |
Revised / New Entry |
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91A |
1701 or 1702 |
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled |
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab,pre-packaged and labelled |
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Schedule II – 6% |
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186A |
8214 |
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Pencil sharpeners |
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Schedule III – 9% |
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302A |
8214 |
Other articles of cutlery (for example, hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives,); manicure or pedicure sets and instruments (including nail files) |
Other articles of cutlery (for example, hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives,); manicure or pedicure sets and instruments (including nail files) [other than pencil sharpeners] |
