Sat Feb 15 06:40:00 UTC 2025: ## GST Council Clarifies Rates and Classifications for Various Goods
**New Delhi, February 15, 2025** – The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications regarding Goods and Services Tax (GST) rates and classifications following recommendations from the 55th GST Council meeting held in Jaisalmer on December 21, 2024. The clarifications, detailed in Circular No. 247/04/2025-GST, address several ambiguities.
Key clarifications include:
* **Pepper (Genus Piper):** The circular provides clarified GST classification and applicability for pepper. (Specific details on classification and rate not provided in summary).
* **Raisins:** Raisins supplied directly by cultivators are exempt from GST and do not require registration.
* **Ready-to-Eat (RTE) Popcorn:** The GST rate depends on ingredients. Salted and spiced popcorn (categorized as namkeens) has one rate, while caramel popcorn (sugar confectionery) is subject to an 18% GST rate. Transactions before February 14, 2025, are regularized, meaning past classification errors will not result in penalties.
* **AAC Blocks with Fly Ash:** AAC blocks containing at least 50% fly ash attract a 12% GST rate (HS Code 6815), while cement/concrete-based products (HS Code 6810) remain at 18%.
* **SUV Ground Clearance:** The clarification confirms that the 22% compensation cess on SUVs with specific criteria (length over 4 meters, engine over 1500cc, and ground clearance of at least 170mm) applies from July 26, 2023, the date of the relevant notification. Retroactive application of this clarification is incorrect.
The CBIC’s circular aims to provide clarity and resolve potential disputes arising from previous ambiguities in GST classifications and rates. Businesses are advised to refer to Circular No. 247/04/2025-GST for complete details.
First Piper 