5% GST for Un-Fried Extruded Snack Pellets, 18% for Ready –To-Eat variants: CBIC Circular No 200/12/2023


5% GST for Un-Fried Extruded Snack Pellets, 18% for Ready –To-Eat variants: CBIC Circular  No 200/12/2023



In accordance with the recommendations made during the 50th GST Council meeting, the Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification pertaining to the GST rates and classification of specific goods.

As per the notification, the supply of uncooked or unfried extruded snack pellets, regardless of their name, falling under the Customs Tariff Heading (CTH) 1905, will now attract a GST rate of 5% starting from 27th July 2023. However, extruded snack pellets in a ready-to-eat form will continue to attract an 18% GST rate.

Regarding fish-soluble paste, it was previously subjected to an 18% GST rate. However, following the recommendation of the GST Council, the GST rate on fish-soluble paste, falling under CTH 2309, has been reduced to 5%.

Furthermore, it has been clarified that the supply of raw cotton, including kala cotton, from agriculturists to cooperatives is considered a taxable supply. The supply of raw cotton by agriculturists to cooperatives, being registered persons, will attract 5% GST on a reverse charge basis.

In compliance with the GST Council’s agreement, embroidery or zari articles such as imi, zari, kasab, saima, dabka, chumki, gota, sitara, nagsi, kora, glass beads, badla, gizai will be taxed at a rate of 5%. Additionally, based on the recommendation of the 28th GST Council, it has been clarified that imitation zari thread or yarn known as “Kasab” or any other name in trade parlance will attract a uniform GST rate of 12% under tariff heading 5605.

The copy of the circular is as under: