Business
GST Council Meeting: GST Rates on Packaging Materials Reduced to Aid Farmers
The 53rd meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, concluded with significant decisions aimed at aiding farmers and streamlining the tax structure. One of the key highlights was the reduction of GST rates on packaging materials, particularly carton boxes, from 18% to 12%. This move is set to benefit apple growers in states like Himachal Pradesh and Jammu and Kashmir, providing them with a more favorable tax environment.
Additionally, the Council recommended a uniform GST rate of 12% for all types of milk cans (steel, aluminium), down from the current 18% rate. This adjustment is likely to have a positive impact on various stakeholders in the dairy industry.
Sitharaman announced that a group of ministers (GoM) will commence discussions on rate rationalization, with a progress report expected to be shared during the next meeting. This proactive approach signifies the Council’s commitment to enhancing the GST framework for greater efficiency and clarity.
Other key outcomes of the meeting include:
– The recommendation to introduce a new form, GSTR-1A, allowing taxpayers to add details of the current tax period for better reporting compliance.
– A monetary limit of Rs 20 lakh suggested for GST Appellate Tribunal cases to reduce government litigation and expedite dispute resolution.
– All types of sprinklers, including fire sprinklers, now attract a 12% GST rate, alongside solar cookers falling under the same category.
– Service exemptions for specific railway operations such as battery-operated vehicles and intra-railway services, with these services being exempt from GST.
The meeting witnessed the participation of various state leaders, including Chief Ministers from Goa and Meghalaya, Deputy Chief Ministers from Bihar, Haryana, Madhya Pradesh, and Odisha, as well as Finance Ministers from different states and Union Territories with legislative powers. The collaborative effort demonstrated a commitment to addressing taxation challenges and fostering economic growth.
