Notification No. 05/2024-Central Tax (Rate): Amendments in GST Rates for Specific Goods
Date of Notification: October 8, 2024
Notification No.: 05/2024-Central Tax (Rate)
Effective Date: October 10, 2024
Issued by: Ministry of Finance (Department of Revenue), Government of India
Overview:
This notification outlines various amendments to the Central Goods and Services Tax (CGST) rates on several goods, ranging from pharmaceutical products to snack pellets and motor vehicle seats. The changes are primarily made in the following GST schedules:
- Schedule I (2.5%)
- Schedule II (6%)
- Schedule III (9%)
- Schedule IV (14%)
Key Amendments Introduced:
1. Schedule I – 2.5% GST Rate
Three new pharmaceutical products are added under the 2.5% GST rate category:
| S. No. | Item Description |
|---|---|
| 233 | Trastuzumab Deruxtecan |
| 234 | Osimertinib |
| 235 | Durvalumab |
2. Schedule II – 6% GST Rate
A new entry has been added under HSN 1905, covering snack pellets manufactured by the extrusion process.
| S. No. | HSN Code | Description |
|---|---|---|
| 32C | 1905 90 30 | Extruded or expanded products, savoury or salted snack pellets, by whatever name called, manufactured through process of extrusion |
3. Schedule III – 9% GST Rate
Amendments have been made to S. No. 16 and S. No. 435A under Schedule III:
- Against S. No. 16: The phrase “un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion” is modified to include extruded or expanded products, savoury or salted snack pellets.
- New Entry for S. No. 435A:
| S. No. | HSN Code | Description |
|---|---|---|
| 435A | 9401 | Seats (other than those of heading 9402), including convertible seats used in aircraft or for motor vehicles |
4. Schedule IV – 14% GST Rate
A new entry has been added under Schedule IV related to seats used in motor vehicles:
| S. No. | HSN Code | Description |
|---|---|---|
| 210A | 9401 20 00 | Seats of a kind used for motor vehicles |
Important Dates:
| Event | Date |
|---|---|
| Notification Date | October 8, 2024 |
| Effective Date | October 10, 2024 |
Impact of the Notification:
- Pharmaceutical Industry: Life-saving drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab are now more affordable, given the reduced GST rate of 2.5%.
- Snack Pellet Industry: Snack products manufactured by extrusion are now clearly categorized, ensuring clarity in tax compliance.
- Automobile Industry: The GST rate changes on seats for motor vehicles and aircraft add clarity to taxation for manufacturers in this sector.
Notification No. 05/2024-Central Tax (Rate) introduces several critical updates to the GST rate structure, particularly benefiting the pharmaceutical, snack, and automobile sectors. Businesses should immediately align their pricing and compliance practices with the revised rates, effective from October 10, 2024.
Visit www.cagurujiclasses.com for practical courses
