TaxTMI 
TaxTMI 
TaxTMI 
Background:
Earlier, the CBIC issued Notification No. 21/2018-Central Tax (Rate) dated July 26, 2018 (“the Concessional Rate Notification”)in order toprescribe concessional GST rate on specified handicraft items.
Further, the new (seventh) edition of the Harmonized System (HS) nomenclature i.e., HS-2022, has come into force from January 01, 2022. This edition has introduced significant changes to the Harmonized System with a total of 351 amendments at the six-digit level, covering a wide range of goods moving across borders.
As India is a party to the HS convention, necessary changes were brought in accordingly, in GST through the below mentioned notification:
Notification:
The CBIC vide Notification No. 20/2021- Central Tax (Rate) dated December 28, 2021 has amended relevant entries of the Concessional Rate Notification w.e.f. January 1, 2022, in the following manner:
S.No. | Old HSN | Old Entry | New HSN | New Entry |
4 | 4414 00 00 | Wooden frames for painting, photographs, mirrors etc. | 4414 | Wooden frames for painting, photographs, mirrors etc. |
29 | 7419 99 | Art ware of brass, copper/ copper alloys, electro plated with nickel/silver | 7419 80 | Art ware of brass, copper/ copper alloys, electro plated with nickel/silver |
Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).
Our comments:
Similar changes have been adopted in Custom Tariff Act, 1975 from January 01, 2022 so as to align the same with HS 2022 vide D.O.F.No.524/11/2021-STO(TU) dated December 20, 2021.