CircularNo.235/29/2024-GST
F.No.CBIC-190354/149/2024-TO(TRU-II)-CBEC
GovernmentofIndia
MinistryofFinance
DepartmentofRevenue
(TaxResearchUnit)
NorthBlock,NewDelhi
Datedthe11
th
October2024
To,
ThePrincipalChiefCommissioners/PrincipalDirectorsGeneral,
TheChiefCommissioners/DirectorsGeneral,
ThePrincipalCommissioners/CommissionersofCentralExcise&CentralTax
Subject:ClarificationregardingGSTrates&classification(goods)basedonthe
recommendationsoftheGSTCouncilinits54thmeetingheldon9
th
September,2024,
atNewDelhi-reg.
Madam/Sir,
BasedontherecommendationsoftheGSTCouncilinits54
th
meetingheldon9
th
September,2024,atNewDelhi,inexerciseofthepowersconferredundersection168(1)of
theCentralGoodsandServicesTaxAct,2017,theBoardherebyclarifiesthefollowing
issuesthroughthiscircularforthepurposeofuniformityintheirimplementation:
1. ClarificationregardingGSTrateonExtruded/ExpandedSavouryfood
products:
1.1Representationswerereceivedseekingclarificationregardingappropriate
classificationandwhethersavouryorsaltedextrudedsnackpelletsareclassifiableunderHS
2106asNamkeensduetodisputesinthefield.BasedontherecommendationsofGST
Council,witheffectfrom10.10.2024,extrudedorexpandedproducts,savouryorsalted
(otherthanun-friedorun-cookedsnackpellets,bywhatevernamecalled,manufactured
throughprocessofextrusion),fallingunderHS19059030attractGSTattherateof12%
videentry32CofScheduleIIofnotification1/2017-CentralTax(Rate)datedthe28
th
June,
2017atparwithnamkeens,bhujia,mixture,chabena(pre-packagedandlabelled)and
similarediblepreparationsinreadyforconsumptionformwhichareclassifiableunderHS
210690ofentry46ofScheduleIIofNotification1/2017-CentralTax(Rate)datedthe28th
June,2017.TheGSTrateof5%continueonun-friedorun-cookedsnackpellets,by
whatevernamecalled,manufacturedthroughprocessofextrusion.
1.2However,itisclarifiedthatthereducedGSTrateof12%onextrudedorexpanded
products,savouryorsalted(otherthanun-friedorun-cookedsnackpellets,bywhatever
namecalled,manufacturedthroughprocessofextrusion)fallingunderHS19059030shall
applyprospectivelyfromthedateofeffectofthesaidnotification.Forthepastperiod,18%
GSTshallbepayable.
2. ClarificationregardingGSTrateonRoofMountedPackageUnit(RMPU)Air
ConditioningMachinesforRailways:
2.1RepresentationshavebeenreceivedregardingclassificationofRoofmountedair
conditionersforRailwaysastowhetherthesegoodsaretobeclassifiedunderHS8415with
28%GSTrateorHS8607with18%GST.
2.2InthisregardGoodsfallingunderheading8415(includingairconditioning
machines)attractaGSTrateof28%videS.No.119ofScheduleIVofnotificationNo.
01/2017-CT(Rate)dated28.06.2017(asamended).Thegoodsfallingunderheading8607
(includingpartsofrailwaysortramwaylocomotives)attractaGSTrateof18%videS.No.
398GofScheduleIIIofnotificationNo.01/2017-CT(Rate)dated28.06.2017(asamended).
Machinesandapparatusofheading8415,whichincludeAirconditioningmachines,are
excludedfromtheambitof‘parts’coveredunderheading8607asperSectionnote2of
SectionXVIIofCustomsTariffAct,1975.FromaconjointreadingofNote2andNote3of
theSectionnotesfortheSectionXVII,itisclearthatgoodsofheading8401to8479
(including8415–AirConditioningMachines)areexcludedfromtheambitof‘parts’
coveredunderChapter86.
2.3Althoughthereisnoambiguityintheclassification,tomakeitexplicitlyclear,itis
clarifiedthattheRoofMountedPackageUnit(RMPU)AirConditioningMachinesfor
RailwaysareclassifiedunderHS8415.
3. ClarificationregardingGSTrateonCarandMotorcycleseats:
3.1Representationswerereceivedseekingclarificationregardingclassificationofseats
meantforfourwheeledcarsandtwo-wheelersandtheconsequentGSTrateonseatsmeant
forfourwheeledcarsandtwo-wheelers.
3.2Withregardstoseatsfortwowheelers,itispertinenttonotethattheExplanatory
NoteforHS9401hasspecificallyexcludeditemsunderHS8714(includespartsand
accessoriesoftwowheelers).TheexplanatorynoteforHS8714hasalistofinclusions,
whichhasmentionofSaddles(seats).Thus,fortwowheelers(HS8711),theseatswouldbe
classifiableunderHS8714attractingGSTrateof28%videS.No.174ofScheduleIVof
notificationNo.1/2017-CentralTax(Rate)dated28
th
June,2017(asamended).
3.3Asregardsseatsfor4wheeledvehicles,HS9401covers‘Seats,whetherornot
convertibleintobedsandpartsthereof’(TariffItem94012000specificallycoversseatsofa
kindusedformotorvehicle).TheExplanatoryNoteforthisheadinghasalsomentionedthat
seatsforvehiclesarecoveredundertheambitofHS9401.Further,theExplanatoryNotesto
Chapter94havealistofexclusionsthatarenottobeclassifiedunderthesaidChapter.This
listofexclusionsdoesnotmentionseatsmeantforvehicles.Thus,itisseenthatcarseat
wouldfallunderHS9401.
3.4Thus,theseatassemblyfor4wheelersareclassifiableunderHS9401whileseatsfor
2-wheelersareclassifiableunderHS8714.ThereisnoambiguityintheGSTratesonthe
saidgoods-carseatswhichareclassifiableunder9401attractGST@18%videS.No.
435AofScheduleIIIofnotificationNo.1/2017-CentralTax(Rate)dated28thJune,2017(as
amended)andseatsmeantfortwowheelersareclassifiableunderHS8714whichattracta
GSTrateof28%.
3.5Inordertobringparitywithseatsofmotorcycles(classifiedunderHS8714)which
alreadyattractaGSTrateof28%,basedontherecommendationoftheCouncil,witheffect
from10.10.2024videS.No.210AofScheduleIVofnotificationNo.1/2017-CentralTax
(Rate)dated28thJune,2017(asamended),carseatsclassifiableunderHS9401attractGST
attherateof28%.Itisclarifiedthatthe28%rateoncarseatsclassifiableunderHS9401is
applicableprospectively,thatis,fromthedateofeffectofthesaidnotification.
4. Fieldformationsunderyourchargemaybeinstructedaccordingly.
5. Difficulty,ifany,intheimplementationofthiscircularmaybebroughttothenotice
oftheBoard.
Yoursfaithfully,
(LimatulaYaden)
JointSecretary(TRU)
Tel:011-23092687
