Clarifications on GST Rates: Key Updates from the 53rd GST Council Meeting

Mr.Sumit Kumar Agarwal 

Assistant Commissioner (IRS GST(Retd)

The Central Board of CGST has clarified GST rates for specific products based on the recommendations of the GST Council meeting held on 22nd June 2024. These clarifications address common doubts and ensure consistent application of GST rates. Here are the critical updates:

1. GST Rate on Solar Cookers:
   • Solar cookers that use solar energy and grid electricity are classified under the heading 8516.
   • These solar cookers attract a GST rate of 12%, as specified in the existing GST rules.
2. GST Rate on Fire Water Sprinklers:
   • There were questions about whether the 12% GST rate for sprinklers also applies to fire water sprinklers.
   • It has been clarified that all sprinklers, including fire water sprinklers, are subject to a 12% GST rate.
   • Any past issues or doubts regarding this classification are now regularised, meaning they are settled as they stand without additional penalties or adjustments.
3. GST Rate on Parts of Poultry-Keeping Machinery:
   • Parts of machinery used in poultry-keeping are classified under tariff item 8436 91 00.
   • These parts are subject to a 12% GST rate. The relevant entry in the GST schedule has been updated to include these parts to avoid any misunderstandings.
4. Definition of ‘Pre-Packaged and Labelled’ for Agricultural Produce:
   • There were concerns about the scope of ‘pre-packaged and labelled’ items for agricultural products, particularly after recent changes in packaging rules.
   • It has now been clarified that agricultural produce in packages of more than 25 kilograms or 25 litres will not be considered 'pre-packaged and labelled.'
   • As a result, these larger packages will not attract the 5% GST rate for more minor, pre-packaged goods.
5. Supplies to or by Government Agencies:
   • Before 17th July 2022, supplies of pulses and cereals in branded packaging attracted a 5% GST rate.
   • For supplies made by or to government agencies involved in distributing these goods under approved schemes, any issues or discrepancies from 1st July 2017 to 17th July 2022 are regularised, meaning no further changes or penalties will apply.
   • Suppliers must provide a certificate from a senior government official to benefit from this regularisation, and any availed Input Tax Credit (ITC) on these supplies must be reversed if suppliers choose to benefit from this clarification.

These clarifications aim to clarify any confusion regarding the GST rates for these items, ensuring that businesses and individuals can comply with the tax laws without ambiguity.