CBIC Notifies Changes in IGST Rates on Goods per 53rd GST Council Meeting

On July 12th, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 02/2024-Integrated Tax (Rate) following the recommendations made during the 53rd GST Council Meeting. The notification announced significant changes in the Goods and Services Tax (GST) rates for various goods. The primary objective of these changes is to reduce the tax burden on essential items and streamline the tax structure. These changes will take effect from July 15th, 2024. This article provides a comprehensive analysis of the new GST rates and their implications.

1. Reduction in GST Rate for Cartons, Boxes, and Cases

One of the notable 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. Uniform GST Rate for Milk Cans

All milk cans, irrespective of their material composition (iron, steel, or aluminium) and their use, will now attract a uniform GST rate of 12%. The HS codes impacted include 7310, 7323, 7612, and 7615. This standardization simplifies the tax structure and ensures uniform taxation for all milk cans.

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%. 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-Integrated 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.

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MINISTRY OF FINANCE
(Department of Revenue)
New Delhi

Notification No. 02/2024-Integrated Tax (Rate) | Dated: 12th July, 2024

G.S.R. 397(E).— In exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 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-Integrated 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. 666(E), dated the 28^th June, 2017, namely:-

In the said notification, –

(A) in Schedule II – 12%, –

(i) after serial number 121 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(ii) after serial number 180 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

(iii) after serial number 183 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

(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 – 18%, –

(i) for serial number 153A and the entries relating thereto, the following serial number and entries shall be substituted, namely: –

(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 from the 15^th day of July, 2024.

[F. No. 190354/94/2024-TRU]
NITISH KARNATAK, Under Secy.

Note: The principal notification No. 1/2017-Integrated Tax (Rate), dated the 28^th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E), dated the 28^th June, 2017, and was last amended vide notification No. 01/2024 – Integrated Tax (Rate), dated the 3^rd January, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 11(E), dated the 3^rd January, 2024.