The Central Board of Indirect Taxes and Customs (CBIC) published Circular No. 189/01/2023-GST on January 13, 2022, which clarifies the imposition of GST on different items. It is centred on the suggestions of the GST Council’s 48th meeting. The CBIC has also issued an announcement for the Applicability of GST on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni in this notification. The details of the announcements are discussed in this article.
CBIC clarifies exemptions on by-products of milling of Dal
Requests for clarification on the appropriate GST rate on byproducts of milling Dal/Pulses such as Chilka, Khanda, and Churi/Chuni have been received.
In its 48th meeting, the GST council suggested that the supply of subject products( by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni) be totally exempted, regardless of end use.
As a result, from January 1, 2023, the aforementioned items will be free from GST under S. No. 102C of Schedule to Notification No. 2/2017-Central Tax (Rate), dated 28.06.2017.
Impact of CBIC’s announcement for by-products of milling of Dal
As a result of the notification, there will be no GST on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni. The recipients will be able to obtain these goods at the nil GST Rate. Furthermore, in light of genuine doubts about the applicability of GST on subject goods, matters that arose during the interim period are hereby regularised on a “as is” basis from the date of issuance of Circular No. 179/11/2022-GST, dated August 3, 2022, until the date of coming into force of the aforementioned S. No. 102C and the entries relating thereto. This is in addition to the matter being regularised under paragraph 8.6 of the abovementioned circular.