CBIC clarification on GST Rates on SUV, Flyash, raisins, popcorns and Pepper [Read Circular]:

The CBIC has issued important clarifications on GST Rates on SUV, Flyash, raisins, popcorns and Pepper.

GST Rate circular on SUV, Flyash, raisins, popcorns and Pepper

CA Pratibha Goyal

Feb 15, 2025

Last update on Feb 15, 2025

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.

GST rate on 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. Read Circular

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CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.