CA Pratibha Goyal | Feb 15, 2025 |
![CBIC clarification on GST Rates on SUV, Flyash, raisins, popcorns and Pepper [Read Circular]](/cdn-cgi/image/fit=contain,format=webp,gravity=auto,metadata=none,quality=80,width=1200,height=730/wp-content/uploads/2025/02/GST-Rate-clarification.jpg)
CBIC clarification on GST Rates on SUV, Flyash, raisins, popcorns and Pepper [Read Circular]
The Central Board of Indirect Taxes and Customs (CBIC) has issued important clarifications on GST Rates on SUV, Flyash, raisins, popcorns and Pepper.
Clarification on Sports utility vehicle (SUV)
The Ministry of Finance has clarified that the amendment carried out vide notification No. 03/2023- Compensation Cess (Rate) dated 26.07.2023 will apply on or after 26.7.2023.
Following the 50th GST Council meeting, vide notification No. 03/2023- Compensation Cess (Rate) dated 26.07.2023, the entry 52B was substituted to provide that the cess will be applicable to all motor vehicles known as utility vehicles by whatever name called, with engine capacity exceeding 1500cc, length exceeding 4000mm and ground clearance of 170mm and above. Furthermore, a new explanation was added that ground clearance means ground clearance in unladen condition.
The effective date of amended entry regarding ground clearance will be on or after 26.7.2023.
GST Rate on Fly ash based Autoclaved Aerated Concrete Blocks
CBIC also clarified that autoclaved aerated concrete (AAC) blocks containing more than 50% fly ash content will fall under HS 6815 and attract 12% GST.
The CBIC also issued a clarification on the GST rate of popcorn.
| Popcorn | HSN | GST Rate | |
| Ready to eat popcorn which is mixed with salt and spices [essential character of namkeens] | Pre-packaged and labelled | HS 2106 90 99 | 12% |
| Ready to eat popcorn which is mixed with salt and spices | Other than pre-packaged and labelled | HS 2106 90 99 | 5% |
| Popcorn mixed with sugar [e.g. caramel popcorn] | Any | HS 1704 90 90 | 18% |
GST Exemptions
The Ministry of Finance has clarified that an agriculturist supplying raisins is not liable to be registered under Section 23(1) of the CGST Act and is exempt from GST.
Besides this, the MOF also clarified that an agriculturist supplying dried pepper is not liable to be registered under Section 23(1) of the CGST Act is exempt from GST.
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