Background:
The GST Council in its 55th meeting held on December 21, 2024, recommended several significant decisions aimed at tax rate changes, trade facilitation, and compliance streamlining under GST. It also recommended a full exemption of GST on gene therapy and contributions made by general insurance companies from third-party motor vehicle premiums to the Motor Vehicle Accident Fund. The Council also recommended to amend the definition of ‘pre-packed and labelled’ to cover all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined under the Legal Metrology Act, or a label affixed thereto is required to bear the declarations under the provisions of the Act and rules.
Now:
The CBIC issued Notification No. 02/2025-Central Tax (Rate) dated January 16, 2025, to amend the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This amendment, authorized under sections 11(1) of the CGST Act, brings modifications to base Notification No. 2/2017-Central Tax Rate dated June 28, 2017 (“the Goods Rate Notification”).
There are the key changes:
(a) in the Schedule, after S. No. 105 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| “105A | 30 | Gene Therapy”, |
(b) in the Explanation, for clause (ii) and the proviso appended to it, the following clause shall be substituted, namely:-
“(ii) The expression ‘pre-packaged and labelled’ means all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined in clause (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.”.
The notification declares that these changes will be come into force with immediate effect.
Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/01/CBIC-N.No_.-02_2025-CUI-Rate.pdf
