New GST Rates on Fruit Pulp, Boxes, Cattle Feed from Jan 2023

From January 1st, 2023, the GST rate was reduced for a few commodities in India. Furthermore, few were GST-exempt. On December 30, 2022, the Central Board of Indirect Taxes and Customs (CBIC) released new CGST notifications, putting into effect changes announced at the 48th GST Council meeting earlier in the same month.

The GST rates that apply to particular products are revised by Notification No. 12/2022-Central Tax (Rate). Ethyl alcohol was previously subject to an 18% GST when supplied to Oil Marketing Companies (OMCs) or Petroleum refineries for mixing with motor spirit (petrol). According to the modification, the aforementioned sale will be subject to 5% GST provided on or after January 1, 2023. Denatured ethyl alcohol and other spirits of any strength will thus continue to be subject to an 18% GST levy.

A 5% GST rate would be imposed on the Sharp pellets, bran pellets, and pellets of any other residues or the same items in any other form obtained by sifting, milling, or working of cereals or leguminous plants. While Notification no. 13/2022-Central Tax (Rate) exempts the supply of husks from pulses, Chilka and concentrates, Chuni or churi, and khanda primarily utilized as cattle feed. No GST would be levied on the husks of pulses along with the items provided above for cattle feed.

Additionally, mathematics boxes, colour boxes, and geometry boxes will be subject to a GST rate of 12%, pencil sharpeners have been left out of this category, unlike in the past. A 12% GST will be levied on fruit pulp or juice-based drinks, not carbonated.

Under Notification no. 14/2022-Central Tax (Rate), supply of peppermint essential oil (Mentha piperita), Spearmint oil, Water mint oil, horsemint oil, and bergamot oil via any unregistered person to registered persons draws a GST on a reverse charge basis. Sales made on or after January 1st, 2023 are covered.

In order to further explain the exemption of renting residential properties to registered people, the government has provided an explanation. According to Notification No. 15/2022-Central Tax (Rate), an exemption will be granted if the renter, who is also the owner of the rented space, uses it as their own dwelling and on their own behalf. if the tenant—who is also the owner—uses the rental as their personal home and on their own behalf. In other words, the owner’s account cannot be used to charge the expenditure.