Certain Clarification regarding GST Rates and Classification of Goods
GST Circular No 247/04/2025 has been issued for Certain Clarification regarding GST Rates and Classification of Goods. This clarification has been issued based on recommendation of the 55th GST Council Meeting held on 21-12-2024 at jaisalmer.
Key Points of Clarification
1. GST Rate on Pepper of genus Piper
- Whether it is green (Fresh), white or black it falls under HSN code of 0904. it is taxed at 5% as per notification No 01/2017- Central tax (Rate) dated 28-06-2017.
- If farmer (agriculturist) sell dried pepper directly from their farm, they do not need to register for GST.This is because farmers supplying their own cultivated produce are exempt from GST Registration under 23(1) (b) of the CGST Act.
2. GST on Raisins (Dried Grapes)
- Farmer (agriculturist) selling raisins do not need to register for GST.Their sale of raisins is exempt from GST under section 23(1) of CGST Act,2017.
3. GST on Ready to eat Popcorn
- Popcorn mixed with salt and spices –
If not Pre-packaged and labeled-5%
If Pre-packaged and labeled -12%
- Caramel popcorn (Sugar-coated popcorn)-18%
Past any confusion related GST on salted popcorn is regularized till 14-02-2025, on an as is where is basis.
4. GST on Fly Ash based Autoclaved Aerated Concrete Blocks
- Fly ash bricks, fly ash aggregates and fly ash blocks – 12% GST (HSN -6815)
- Cement or Concrete articles (reinforced or not) – 18% GST (HSN-6810)
- AAC blocks with more than 50% fly ash- 12% GST (HSN 6815).
5. Compensation cess on SUVs (Luxury and utility Vehicles)
- Before 50th GST Council Meeting, SUVs with engine above 1500 cc attracted 22% Compensation Cess. After 26-07-2023, the definition was updated and effective from 26-07-2023 :
- it applies to any utility vehicle by any name.
it must have engine capacity over 1500 CC , Length exceeding 4000mm, Ground clearance of 170mm (unladen/empty condition)
