The CBIC vide issuing Circular No. 247/04/2025-GST dated 14.02.2025, has issued clarifications regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer.
These Clarifications are as under:
A. Classification and GST applicability on pepper (Genus Piper).
- Pepper (Genus Piper)—whether green (fresh), white, or black—is classified under HS Code 0904, attracting 5% rate.
- Dried pepper supplied directly by an agriculturist from their plantations is exempt from GST. The agriculturist does not need to take GST registration for such supplies.
B. Applicable rate on supply of raisins by agriculturist: If an agriculturist supplies raisins directly from their cultivation, they are exempt from GST and do not need to register under GST.
C. GST rate on ready-to-eat (RTE) popcorn, considering variations in ingredients and packaging:
i. Popcorn Mixed with Salt & Spices ( HS Code 2106 90 99 categorized under namkeens) : GST Rates:
- 5% GST – If sold loose (not pre-packaged & not labeled) as per S. No. 101A of Schedule I of Notification No. 1/2017-Central Tax (Rate).
- 12% GST – If sold pre-packaged & labeled, as per S. No. 46 of Schedule II of the same notification.
ii. Caramel Popcorn (or Popcorn Mixed with Sugar) (HS Code 1704.90.90 (categorized under sugar confectionery)): GST Rate – 18%
Reason: The addition of sugar changes its essential character from namkeen to confectionery.
iii. Regularization of Past Transactions (Before February 14, 2025): Past period until February 14, 2025, is regularized to address classification uncertainties. Past non-compliance due to classification confusion may not attract penalties or tax recoveries.
4. GST rate for AAC blocks containing at least 50% fly ash as raw material.
i. Fly Ash-Based Products (HS Code 6815) includes Fly ash bricks, fly ash aggregates, and fly ash blocks, attracting GST rate 12% as per S. No. 176B of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.
ii. Cement/Concrete-Based Products (HS Code 6810) includes Articles of cement, concrete, or artificial stone (whether reinforced or not), attracting GST rate 18% as per S. No. 181 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.
5. Effective Date of Amended Entry for Ground Clearance
Earlier, the GST Council in its 50th Meeting held on 11.07.2023, has clarified that a uniform rate of 22% percent compensation cess will be levied on all SUVs (irrespective of the auto OEM’s nomenclature) if the vehicle is popularly known as an SUV and has a length greater than 4 metres, an engine over 1,500cc capacity, and at least 170mm ground clearance, & above and to clarify by way of explanation that ‘Ground clearance’ means Ground Clearance in un-laden condition. Further, CBIC issued Notification No. 03/2023-Compensation Cess (Rate) dated 26.07.2023 w.e.f. 27.07.2023, to give effect to this recommendation.
The Council in its 55th Meeting clarified that explanation provided in Sl. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.6.2017, concerning ground clearance shall be deemed to have come into effect from 26th July 2023. The Explanation provides that the Ground Clearance means ground clearance in unladen condition.
Clarification vide this Circular – The amendment is applicable from July 26, 2023 (i.e., the date of Notification No. 03/2023-Compensation Cess (Rate)). Any interpretation applying it retrospectively is incorrect.
To read the complete Circular https://taxo.online/wp-content/uploads/2025/02/Circular-No-247-04-2025.pdf
