GST Rate changes of goods w.e.f. 10.10.2024-CGST Rate notification 05/2024

The Goods and Services Tax (GST) landscape in India is continuously evolving, with regular updates aimed at simplifying tax structures and addressing the needs of different industries. One such significant update came with the release of the CGST Rate Notification 05/2024, effective from October 10, 2024. This notification introduces important changes in the GST rates for various goods, which are set to impact both businesses and consumers. 

Let’s understand the notification!

Notification No. 05/2024 - Central Tax (Rate) dated 08th October, 2024

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MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

Date: 08.10.2024

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Notification No. 05/2024 - Central Tax (Rate)

G.S.R. 611(E).- In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 1/2017-Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, namely:-

In the said notification, -

(a) After Schedule I - 2.5%, in List 1, after item number 232 and the entries relating thereto, the following item numbers and entries shall be inserted, namely: -

"(233) Trastuzumab Deruxtecan

(234) Osimertinib

(235) Durvalumab";

(b) In Schedule II - 6%, after S. No. 32B and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(c) In Schedule III - 9%, -

(i) Against S. No. 16, in column (3), for the words "un-fried or un-cooked snack pellets, by whatever name called, manufactured through a process of extrusion", the words "un-fried or un-cooked snack pellets, by whatever name called, manufactured through a process of extrusion, extruded or expanded products, savoury or salted" shall be substituted;

(ii) For S. No. 435A and the entries relating thereto, the following S. No. and entries shall be substituted, namely:

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(d) In Schedule IV - 14%, after S. No. 210 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -

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2. This notification shall come into force on the 10th day of October, 2024.

[F. No. CBIC-190354/149/2024-TO(TRU-II)]

AMREETA TITUS, Dy. Secy.

Note: - The principal notification No. 1/2017-Central Tax (Rate), dated the 28th June 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June 2017, and was last amended vide notification No. 2/2024 - Central Tax (Rate), dated the 12th July 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 396(E), dated the 12th July 2024.

Key Highlights of CGST Notification No. 05/2024 - Central Tax (Rate)

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• The following pharmaceutical products are added to 5% GST rate schedule:

1. Trastuzumab Deruxtecan
2. Osimertinib
3. Durvalumab

• In the 12% GST Schedule, a new entry for extruded or expanded savoury or salted products (excluding un-fried or uncooked snack pellets) is added.

• In the 18% GST Schedule, modification is made to the description of extruded snack pellets and the inclusion of extruded or expanded savoury products.

• In the 18% GST Schedule, a new entry is added for Seats (excluding those used in aircraft or motor vehicles) that have been updated to include specific products like seats not convertible into beds in HSN 9401.

• In the 28% GST Schedule, a new entry is added for the Seats for motor vehicles (HS Code 9401 20 00).

• The changes will come into force on October 10, 2024.

Conclusion

The recent amendments introduced by the Ministry of Finance under CGST Notification No. 05/2024 bring important updates to various GST schedules. These changes, effective from October 10, 2024, cover a range of sectors, from pharmaceutical products to consumer goods and automotive components. By adding new items to the GST classifications and revising existing entries, the government aims to improve the clarity and efficiency of the tax system. Businesses and manufacturers should stay informed of these adjustments to ensure compliance and avoid disruptions. Ultimately, such updates reflect the ongoing efforts to fine-tune the Goods and Services Tax regime, enhancing its adaptability to changing market needs and helping businesses navigate the complexities of taxation with greater ease.

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