The Central Board of Indirect Taxes and Customs (CBIC) has issued a Circular No. 189/01/2023-GST dated 13th January,2022 clarifying the tax and cess rates applicable on items like sports utility vehicles (SUVs) , snack pellets, carbonated drinks etc in line with the decision of the Goods and Services Tax (GST) Council in December.
As per Circular CBIC has inter alia clarified that GST compensation cess at the rate of 22% is applicable on motor vehicles falling under heading 8703 which satisfy all four specifications it has outlined–these vehicles are popularly known as SUVs, the engine capacity exceeds 1,500 cc, the length exceeds 4,000 mm and the ground clearance is 170 mm and above. This clarification is applicable only to SUVs. This brings clarity on the issue of SUV taxation.
Further in said Circular it has been clarified that carbonated beverages of fruit drinks or carbonated beverages with fruit juice attract GST at the rate of 28% and compensation cess at the rate of 12%. CBIC also explained that snack pellets such as ‘fryums’, which are manufactured through the process of extrusion, will attract GST at the rate of 18%.
Further it has been clarified that the by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni are exempt from 1st January,2023.
Read / Download Circular: CLICK HERE
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