New GST Rate changes for Goods by 53rd GST Council Meeting : you must know

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In the 53rd GST Council meeting held on June 22, 2024, several significant changes to the GST rates on various goods were announced. Among these decisions, the Council established a uniform IGST rate for aircraft parts, adjusted the GST on milk cans, and reduced the GST rate on cartons and boxes. Additionally, clarifications on the GST treatment of solar cookers, poultry keeping machinery, and sprinklers were provided. Extensions of IGST exemptions for defence forces and research equipment were also approved. While these changes mark substantial progress, other pending matters, such as the GST rate on fertilizers, will be taken up in the next Council meeting scheduled for August 2024.

Read Detailed Press Release of 53rd GST Council meeting

The GST Council has made several decisions regarding the GST rates on various goods:

1. Uniform GST Rate for Aircraft Parts

A uniform IGST rate of 5% will apply to imports of parts, components, testing equipment, tools, and tool-kits for aircraft, regardless of their classification. This aims to boost Maintenance, Repair, and Overhaul (MRO) activities, with specific conditions to be met.

2. GST on Milk Cans

All milk cans made of steel, iron, or aluminium will attract a GST rate of 12%, regardless of their intended use.

3. GST Rate Reduction on Cartons and Boxes

The GST rate on cartons, boxes, and cases made of corrugated or non-corrugated paper or paper-board (classified under HS codes 4819 10 and 4819 20) will be reduced from 18% to 12%.

4. Solar Cookers

All types of solar cookers, whether they use a single or dual energy source, will attract a GST rate of 12%.

Know How to find Updated GST Rates, HSN & SAC

5. Clarification on Poultry Keeping Machinery

The GST entry for Poultry keeping Machinery attracting 12% GST will specifically include “parts of Poultry keeping Machinery” to resolve interpretational issues.

6. GST on Sprinklers

All types of sprinklers, including fire water sprinklers, will attract a GST rate of 12%. This decision aims to clarify past practices based on genuine interpretational issues.

7. Extension of IGST Exemption for Defence Forces

The IGST exemption on imports of specified items for defence forces is extended for another five years until June 30, 2029, to support defence preparedness.

These decisions by the GST Council aim to streamline tax rates and provide clarity on the GST treatment of various goods, benefiting both businesses and consumers.

8. Extension of IGST Exemption for Research Equipment

The IGST exemption on imports of research equipment and buoys under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme will be extended, subject to specified conditions.

9. Exemption of Compensation Cess in SEZ Imports

From July 1, 2017, Compensation Cess on imports into Special Economic Zones (SEZs) by SEZ units and developers for authorized operations will be exempted.

These decisions aim to support research initiatives and ease tax burdens on operations within Special Economic Zones, contributing to smoother implementation and compliance.

The GST Council has introduced the following miscellaneous changes:

10. Exemption of Compensation Cess on Aerated Beverages and Energy Drinks

Compensation cess on the supply of aerated beverages and energy drinks to authorized customers by Unit Run Canteens under the Ministry of Defence will be exempted.