Clarification on GST Rates and Classification of Goods

Circular No. 235/29/2024-GST

Date: 11th October 2024
Issued by: Ministry of Finance, Government of India

Key Highlights Based on the 54th GST Council Meeting (9th September 2024)

1. GST on Extruded/Expanded Savoury Food Products
Issue: There were disputes on whether savoury or salted extruded snack pellets should be classified as “Namkeens” under HS 2106.
Clarification:
12% GST will apply to extruded or expanded savoury or salted products (excluding un-fried or un-cooked snack pellets) under HS 1905 90 30 from 10th October 2024.
5% GST remains applicable on un-fried or un-cooked snack pellets manufactured through extrusion.
• Prior to this date, an 18% GST applies to the past period.
2. GST on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways
Issue: Clarification needed on classification, whether under HS 8415 (28% GST) or HS 8607 (18% GST).
Clarification:
• Roof-mounted air conditioning machines for railways are classified under HS 8415, attracting 28% GST.
3. GST on Car and Motorcycle Seats
Issue: Classification of seats for four-wheelers and two-wheelers.
Clarification:
Motorcycle seats are classified under HS 8714, attracting 28% GST.
Car seats are classified under HS 9401, previously attracting 18% GST. However, based on the Council’s recommendation, effective from 10th October 2024, car seats will now attract 28% GST.