53rd GST Council Meeting: Know Recommendations Relating To GST Rates On Goods & Services

The GST Council made the following recommendations relating to changes in GST tax rates:

1. Uniform IGST Applicable On Components Related To Aircrafts

A uniform rate of 5% IGST will apply to imports of 'Parts, components, testing equipment, tools and tool-kits of aircrafts, irrespective of their HS classification to provide a fillip to MRO activities subject to specified conditions.

2. 12% GST On Milk Cans

All milk cans (of steel, iron and aluminium) irrespective of their use will attract 12% GST.

3. GST Reduction on Corrugated and non-corrugated paper

GST rate on 'carton, boxes and cases of both corrugated and non-corrugated paper or paper-board' (HS 4819 10; 4819 20) to be reduced from 18% to 12%.

4. 12% GST On Solar Cookers

All solar cookers, whether single or dual energy sources, will attract 12% GST.

5. Poultry keeping Machinery attracting 12% GST

To amend existing entry covering Poultry keeping Machinery attracting 12% GST to specifically incorporate “parts of Poultry keeping Machinery” and to regularise past practice on 'as is where is' basis in view of genuine interpretational issues.

6. 12% GST on sprinklers

The council clarified that all types of sprinklers including fire water sprinklers will attract 12% GST and to regularise the past practice on 'as is where is' basis in view of genuine interpretational issues.

7. Extends IGST Exemption On Import Of Defence Items

The council extended IGST exemption on imports of specified items for defence forces for a further period of five years till 30th June, 2029

8. IGST exemption on imports of research equipment

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

9. Compensation Cess exemption on the imports in SEZ

The council exempted Compensation Cess on the imports in SEZ by SEZ Unit/developers for authorised operations w.e.f. 01.07.2017.

10. Exempt Compensation cess on supply of aerated beverages

The council has exempted Compensation cess on supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under Ministry of Defence.

11. GST rates on services

The council recommended to xempt the services provided by Indian Railways to general public, namely, sale of platform tickets, facility of retiring rooms/waiting rooms, cloak room services and battery-operated car services and to also exempt the Intra-Railway transactions. The issue for the past period will be regularized from 20.10.2023 to the date of issue of exemption notification in this regard.