On July 12th, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 02/2024-Central Tax (Rate), bringing into effect several changes in the Goods and Services Tax (GST) rates for specific goods. This move follows the recommendations made during the 53rd GST Council Meeting. The primary objective of these changes is to simplify the tax structure and alleviate the tax burden on essential items. The new rates will be effective from July 15th, 2024. In this article, we will delve into the specifics of these changes and their implications.
1. Reduction in GST Rate for Cartons, Boxes, and Cases
One of the significant changes is the reduction in the GST rate for cartons, boxes, and cases made of both corrugated and non-corrugated paper or paper-board. Previously taxed at 18%, these items will now attract a reduced GST rate of 12%. The specific Harmonized System (HS) codes affected by this change are 4819 10 and 4819 20.
2. Unified GST Rate for Milk Cans
All milk cans, regardless of their use and the materials they are made from (iron, steel, or aluminium), will now attract a uniform GST rate of 12%. The HS codes impacted include 7310, 7323, 7612, and 7615.
3. Reduced GST Rate for Solar Cookers
Another significant change is the reduction in the GST rate for solar cookers. These eco-friendly cooking devices, whether single or dual energy source, will now attract a GST rate of 12%, down from a higher rate previously. The HS codes relevant to this change are 7321 and 8516.
4. GST Rate for Parts of Brooders
The GST rate on parts of brooders has been set at 12%. This change is particularly significant for the poultry industry, which relies on brooders and their parts for efficient operations.
Conclusion
The CBIC’s Notification No. 02/2024-Central Tax (Rate) introduces several beneficial changes to the GST rates on specific goods, effective from July 15th, 2024. These changes reflect the government’s commitment to simplifying the tax structure and reducing the tax burden on essential items. The reduction in GST rates for cartons, milk cans, solar cookers, and parts of brooders is expected to have a positive impact on businesses and consumers alike.
By lowering the costs for essential goods, the government aims to stimulate economic activity and support sustainable practices. Businesses in the packaging, dairy, renewable energy, and poultry sectors stand to benefit significantly from these changes, which should, in turn, have a positive ripple effect on the broader economy. As these new rates come into effect, it will be essential for businesses to update their compliance practices to align with the revised tax structure.
These changes underscore the dynamic nature of GST and the ongoing efforts to fine-tune the tax system to better serve the needs of the economy and its stakeholders. The 53rd GST Council Meeting’s recommendations, as reflected in this notification, are a step towards achieving a more streamlined and efficient tax regime in India.
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MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 02/2024-Central Tax (Rate) | Dated: 12th July, 2024
G.S.R. 396(E). — In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 1/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, namely:-
In the said notification, –
(A) in Schedule II – 6%, –
(i) after serial number 121 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-
| “121A
|
4819 10, 4819 20 | Cartons, boxes and cases of, –
(a) corrugated paper or paper board; or (b) non-corrugated paper or paper board”; |
(ii) after serial number 180 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| “180A | 7310, 7323, 7612, or 7615 | Milk cans made of Iron, Steel, or Aluminium”; |
(iii) after serial number 183 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| “183A | 7321 or 8516 | Solar cookers”; |
(iv) against serial number 199, in column (3), after the word “brooders”, the words and symbol “; parts thereof” shall be inserted;
(B) in Schedule III – 9%, –
(i) for serial number 153A and the entries relating thereto, the following serial number and entries shall be substituted, namely: –
| “153A | 4819 (except 4819 10, 4819 20) | All Goods
(other than Cartons, boxes and cases of, – (a) corrugated paper or paper board; or (b) non-corrugated paper or paper board)”; |
(ii) against serial number 224, after the word “equipment”, the words and symbols “; other than Milk cans made of Iron, or Steel” shall be inserted;
(iii) against serial number 235, in column (3), at the end, for the words, “and wood burning stoves of iron or steel”, the words, “ ,wood burning stoves of iron or steel, and solar cookers” shall be substituted;
(iv) against serial number 273, after the words “boxes, etc.”, the words and symbols “; other than Milk cans made of Aluminium” shall be inserted;
(v) against serial number 275A, after the words “Utensils”, the words and symbol “; Milk cans made of Aluminium” shall be inserted;
(vi) against serial number 378A, in column (3), for the words and symbol “domestic purposes;” the words, symbol and brackets “domestic purposes [other than solar cookers];” shall be substituted;
(C) after the Schedule VII, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:-
“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”.
2. This notification shall come into force on the 15th day of July, 2024.
[F. No. 190354/94/2024-TRU]
NITISH KARNATAK, Under Secy.
Note: – The principal notification No. 1/2017-Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, and was last amended vide notification No. 01/2024 – Central Tax (Rate), dated the 3rd January, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 10(E), dated the 3rd January, 2024.
