Un-Fried Extruded Snack Pellets Attracts 5% GST, Ready- To-Eat Extruded Snack Pellets Attracts 18%: CBIC

The Central Board of Indirect Taxes and Customs (CBIC), on the recommendation of the 50th GST Council meet issued a clarification regarding GST rates and classification of certain goods.

The board has notified that the supply of un-cooked/un-fried extruded snack pellets, by whatever name called, falling under CTH 1905 will attract 5% GST with effect from 27th July 2023. However, extruded snack pellets in the ready-to-eat form will continue to attract 18% GST.

Fish-soluble paste attracted 18% GST. As per the recommendation of the GST Council, GST on fish soluble paste, falling under CTH 2309, has been reduced to 5%.

The supply of raw cotton, including kala cotton, from agriculturists to cooperatives is a taxable supply and the supply of raw cotton by agriculturists to the cooperatives (being a registered person) attracts 5% GST on a reverse charge basis.

The Council agreed to tax embroidery or zari articles i.e., imi, zari, kasab, saima, dabka, chumki, gota, sitara, naqsi, kora, glass beads, badla, gizai at the rate of 5%. Based on the recommendation of the 28th GST Council, it was clarified that imitation zari thread or yarn known as “Kasab” or by any other name in trade parlance, would attract a uniform GST rate of 12% under tariff heading 5605.

Circular No. 200/12/2023-GST

Date: 01/08/2023

Click Here To Read The Circular