01/2023 – Central Tax Dated 4 January 2023

CBIC has assigned the powers of the Superintendent of Central Tax to Additional Assistant Directors in the Directorate General of Goods and Services Tax Intelligence (DGGI), Directorate General of Goods and Services Tax (DGGST), and Directorate General (DG) Audit.


Circular No. 189/02/2023-GST dated 13 January 2023

Based on the recommendations of the GST Council in its 48th meeting, the CBIC issued a Circular clarifying the levy of GST vis-à-vis the supply of the following goods:

  1. Rab - Rab is appropriately classifiable under the heading 1702, attracting a GST rate of 18%.
  2. By-products of Dal/Pulses milling such as Chilka, Khanda and Churi/Chuni, - with effect from 1 January 2023, the said goods shall be exempt under GST vide S. No. 102C of schedule of notification No. 2/2017-Central Tax (Rate), dated 28 June 2017.
  3. Carbonated Beverages of Fruit Drinks or Carbonated Beverages with Fruit Juice, Snack pellets manufactured through an extrusion process (such as fryums) - The said goods attract GST at the rate of 28% and Compensation Cess at the rate of 12%.
  4. Sports Utility Vehicles (SUVs), Land Seismic Survey Equipment and accessories - Compensation Cess at the rate of 22% is applicable to SUVs wherein the engine capacity exceeds 1,500 cc; the length exceeds 4,000 mm; and the ground clearance is 170 mm and above.
  5. All types of drilling rigs etc.
  6. Helicopters, including assemblies/parts.
  7. All types of marine vessels.
  8. X-band radar transponders.

Circular No. 190/01/2023-GST dated 13 January 2023

CBIC has clarified the applicability of GST on the following:

  1. Accommodation services supplied by Air Force Mess or other similar messes, like Army Mess, Navy Mess, Paramilitary and Police Forces Mess, to their personnel or any person other than a business entity.
  2. Incentive paid by MeitY to acquiring banks under the Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions.

GST Technical Updates

Advisory on "Initiating Drop Proceeding" by taxpayers dated 12 January 2023

Recently, a functionality of Automated Drop Proceedings of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. Such taxpayers who have filed their pending six monthly or two Quarterly returns are advised to revoke the suspension once the due returns have been filed by clicking on "INITIATE DROP PROCEEDING," for which navigation is as follows:

"Services > User Services > View Notices and Orders > Initiate Drop Proceeding"

Advisory on taxpayers facing issues in filing GSTR-3B dated 16 January 2023

Taxpayers who had submitted their TRAN forms on the portal but did not finally File it within the specified time are advised to raise a ticket on GST Grievance Portal, giving consent that GSTN may reset their TRAN filing status. Once the consent for resetting their unfiled TRAN forms is received, the TRAN forms will be reset, and the taxpayer will be able to file their GSTR-3B.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.