The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 02/2024-Union Territory Tax (Rate), dated July 12, 2024, which introduces several changes in the Goods and Services Tax (GST) rates for various goods. This notification follows the recommendations made during the 53rd GST Council Meeting. The changes, effective from July 15, 2024, aim to streamline tax rates and promote certain industries by reducing the GST burden on essential items. This article provides a detailed analysis of the changes introduced in the notification.
1. Reduction in GST Rate on Cartons, Boxes, and Cases
Previous GST Rate: 18%
New GST Rate: 12%
HS Code: 4819 10, 4819 20
The GST rate on cartons, boxes, and cases made of both corrugated and non-corrugated paper or paperboard has been reduced from 18% to 12%. This reduction is expected to benefit the packaging industry, reducing costs for manufacturers and ultimately for consumers. These items are commonly used for packaging a wide variety of products, and the lower GST rate can help in cost-effective packaging solutions.
2. Uniform GST Rate on All Milk Cans
Previous GST Rate: Varied
New GST Rate: 12%
HS Code: 7310, 7323, 7612, 7615
All milk cans, irrespective of their material (steel, iron, or aluminum), will now attract a uniform GST rate of 12%. Previously, the GST rates varied based on the material. This standardization simplifies the tax structure and reduces the tax burden on dairy farmers and the dairy industry, promoting better storage and transportation of milk.
3. GST Rate on Solar Cookers
Previous GST Rate: 18%
New GST Rate: 12%
HS Code: 7321, 8516
All solar cookers, including those with single or dual energy sources, will now attract a reduced GST rate of 12%. This change encourages the adoption of renewable energy solutions, aligning with the government’s commitment to sustainable energy practices. The lower tax rate is expected to make solar cookers more affordable, thereby increasing their usage among households.
4. GST Rate on Parts of Brooders
Previous GST Rate: 18%
New GST Rate: 12%
HS Code: Included with brooders
The GST rate on parts of brooders has been reduced to 12%. Brooders are essential in the poultry industry for rearing young birds. By lowering the tax rate on these parts, the government aims to support the poultry industry, making the equipment more affordable and promoting better poultry farming practices.
Conclusion
The CBIC’s Notification No. 02/2024-Union Territory Tax (Rate), dated July 12, 2024, introduces significant changes in GST rates based on the recommendations of the 53rd GST Council Meeting. The reduction in GST rates on cartons, milk cans, solar cookers, and parts of brooders is a strategic move to boost various sectors, from packaging to dairy and renewable energy. These changes, effective from July 15, 2024, reflect the government’s effort to streamline GST rates and support key industries by reducing the tax burden.
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MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 02/2024-Union territory Tax (Rate) | Dated: 12th July, 2024
G.S.R. 398(E). — In exercise of the powers conferred by sub-section (1) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 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-Union Territory 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. 710(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, –
(e) corrugated paper or paper board; or (f) 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, – (e) corrugated paper or paper board; or (f) 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 from the 15th day of July, 2024.
[F. No. 190354/94/2024-TRU]
NITISH KARNATAK, Under Secy.
Note: The principal notification No. 1/2017-Union territory 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. 710(E), dated the 28th June, 2017, and was last amended vide notification No. 01/2024 – Union territory 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. 12(E), dated the 3rd January, 2024.
