On 28th June 2017, under sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government notified the CGST rate schedule applicable to goods. This notification shall come into force with effect from the 1st day of July 2017.
As per the Goods and Services Tax Regime, both Central GST (CGST) and State GST (SGST) will be levied on all supplies that are intra-State in nature. For supplies that are inter-State, Integrated GST (IGST) will be levied on it. The revenue generated on the same will be shared by both the Central and State Government.
CGST Rate Schedule
As per the notification by the government, the CGST rate schedule consists of six such schedules that are applicable for different rates as shown in the following:
(i) 2.5 % in respect of goods specified in Schedule I and it contains goods like fish, fish fellets, dried fish, molluscs, aquatic invertebrates, milk, egg, natural honey, ivory, vegetables etc.
(ii) 6 % in respect of goods specified in Schedule II and it contains goods like live horses, meat, butter, Brazil nuts, dates, dry fruits, sausages, mushrooms and truffles, lottery run by State Governments on which 6 % CGST is applicable.
(iii) 9 % in respect of goods specified in Schedule III and it contains goods such as condensed milk, malt, vegetable saps and extracts, bidi wrapper leaves, refined sugar, sugar cubes, corn flakes, biscuits, pastries and cakes, soaps and broths, ice-cream, printing inks, hair oil etc.
(iv) 14 % in respect of goods specified in Schedule IV and it contains chewing gum, bubble gum, cocoa powder, fat and oil, pan masala, other non-alcoholic beverages, granite, beauty or make-up preparations and preparations for the care of the skin, air-conditioning machines, monitors, and projectors etc.
(v) 1.5 % in respect of goods specified in Schedule V, and it contains goods such as pearls, diamonds, and other precious stones etc.
(vi) 0.125 % in respect of goods specified in Schedule VI and it contains goods such as diamonds, non-industrial unworked or simply sawn, cleaved or bruted etc.
Important points to be noted for the purposes of this notification:
(i) The phrase “unit container” means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.
(ii) The phrase “registered brand name” means brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to
indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person, and which is registered under the Trade Marks Act, 1999.
(iii) “Tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
The complete notification of the CGST rate schedule can be found below: