Circular No. 235/29/2024-GST
F. No. CBIC-190354/149/2024-TO(TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi
Dated the 11th October 2024
To,
The Principal Chief Commissioners/ Principal Directors General,
The Chief Commissioners/ Directors General,
The Principal Commissioners/ Commissioners of Central Excise & Central Tax
Subject: Clarification regarding GST rates & classification (goods) based on the
recommendations of the GST Council in its 54th meeting held on 9th September, 2024,
at New Delhi -reg.
Madam/Sir,
Based on the recommendations of the GST Council in its 54th meeting held on 9th
September, 2024, at New Delhi, in exercise of the powers conferred under section 168(1) of
the Central Goods and Services Tax Act, 2017, the Board hereby clarifies the following
issues through this circular for the purpose of uniformity in their implementation:
1.
Clarification
regarding
GST
rate
on
Extruded/Expanded
Savoury food
products:
1.1
Representations
were
received
seeking
clarification
regarding
appropriate
classification and whether savoury or salted extruded snack pellets are classifiable under HS
2106 as Namkeens due to disputes in the field. Based on the recommendations of GST
Council, with effect from 10.10.2024, extruded or expanded products, savoury or salted
(other than un-fried or un-cooked snack pellets, by whatever name called, manufactured
through process of extrusion), falling under HS 1905 90 30 attract GST at the rate of 12%
vide entry 32C of Schedule II of notification 1/2017-Central Tax (Rate) dated the 28th June,
2017 at par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled) and
similar edible preparations in ready for consumption form which are classifiable under HS
2106 90 of entry 46 of Schedule II of Notification 1/2017-Central Tax(Rate) dated the 28th
June, 2017. The GST rate of 5% continue on un-fried or un-cooked snack pellets, by
whatever name called, manufactured through process of extrusion.
1.2
However, it is clarified that the reduced GST rate of 12% on extruded or expanded
products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever
name called, manufactured through process of extrusion) falling under HS 1905 90 30 shall
apply prospectively from the date of effect of the said notification. For the past period, 18%
GST shall be payable.
2.
Clarification regarding GST rate on Roof Mounted Package Unit (RMPU) Air
Conditioning Machines for Railways:
2.1
Representations have been received regarding classification of Roof mounted air
conditioners for Railways as to whether these goods are to be classified under HS 8415 with
28% GST rate or HS 8607 with 18% GST.
2.2
In this regard Goods falling under heading 8415 (including air conditioning
machines) attract a GST rate of 28% vide S. No. 119 of Schedule IV of notification No.
01/2017-CT (Rate) dated 28.06.2017 (as amended). The goods falling under heading 8607
(including parts of railways or tramway locomotives) attract a GST rate of 18% vide S. No.
398G of Schedule III of notification No. 01/2017-CT (Rate) dated 28.06.2017 (as amended).
Machines and apparatus of heading 8415, which include Air conditioning machines, are
excluded from the ambit of ‘parts’ covered under heading 8607 as per Section note 2 of
Section XVII of Customs Tariff Act, 1975. From a conjoint reading of Note 2 and Note 3 of
the Section notes for the Section XVII, it is clear that goods of heading 8401 to 8479
(including 8415 – Air Conditioning Machines) are excluded from the ambit of ‘parts’
covered under Chapter 86.
2.3
Although there is no ambiguity in the classification, to make it explicitly clear, it is
clarified that the Roof Mounted Package Unit (RMPU) Air Conditioning Machines for
Railways are classified under HS 8415.
3.
Clarification regarding GST rate on Car and Motor cycle seats:
3.1
Representations were received seeking clarification regarding classification of seats
meant for four wheeled cars and two-wheelers and the consequent GST rate on seats meant
for four wheeled cars and two-wheelers.
3.2
With regards to seats for two wheelers, it is pertinent to note that the Explanatory
Note for HS 9401 has specifically excluded items under HS 8714 (includes parts and
accessories of two wheelers). The explanatory note for HS 8714 has a list of inclusions,
which has mention of Saddles (seats). Thus, for two wheelers (HS 8711), the seats would be
classifiable under HS 8714 attracting GST rate of 28% vide S. No. 174 of Schedule IV of
notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 (as amended).
3.3
As regards seats for 4 wheeled vehicles, HS 9401 covers ‘Seats, whether or not
convertible into beds and parts thereof’ (Tariff Item 9401 20 00 specifically covers seats of a
kind used for motor vehicle). The Explanatory Note for this heading has also mentioned that
seats for vehicles are covered under the ambit of HS 9401. Further, the Explanatory Notes to
Chapter 94 have a list of exclusions that are not to be classified under the said Chapter. This
list of exclusions does not mention seats meant for vehicles. Thus, it is seen that car seat
would fall under HS 9401.
3.4
Thus, the seat assembly for 4 wheelers are classifiable under HS 9401 while seats for
2-wheelers are classifiable under HS 8714. There is no ambiguity in the GST rates on the
said goods - car seats which are classifiable under 9401 attract GST @ 18 % vide S. No.
435A of Schedule III of notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 (as
amended) and seats meant for two wheelers are classifiable under HS 8714 which attract a
GST rate of 28%.
3.5
In order to bring parity with seats of motorcycles (classified under HS 8714) which
already attract a GST rate of 28%, based on the recommendation of the Council, with effect
from 10.10.2024 vide S. No. 210A of Schedule IV of notification No. 1/2017-Central Tax
(Rate) dated 28th June, 2017 (as amended), car seats classifiable under HS 9401 attract GST
at the rate of 28%. It is clarified that the 28% rate on car seats classifiable under HS 9401 is
applicable prospectively, that is, from the date of effect of the said notification.
4.
Field formations under your charge may be instructed accordingly.
5.
Difficulty, if any, in the implementation of this circular may be brought to the notice
of the Board.
Yours faithfully,
(Limatula Yaden)
Joint Secretary (TRU)
Tel: 011 -2309 2687
