GST Council Reduces Rates on Carton Boxes and Milk Cans, Aids Apple Growers

Union Finance Minister Nirmala Sitharaman announced significant decisions made at the 53rd GST Council meeting. One of the key highlights was the reduction in GST rates on carton boxes from 18% to 12%. This move aims to benefit apple growers, especially in Himanchal Pradesh and Jammu and Kashmir.

Additionally, the GST Council decided to standardize the GST rate on all milk cans (steel, aluminium) to 12%, down from the existing 18% rate. These adjustments are set to have a positive impact on the packaging industry.

The Finance Minister disclosed that the group of ministers (GoM) on rate rationalization will initiate talks on this subject, with a progress report expected at the next meeting. Such revisions are welcomed to streamline tax policies and support various sectors.

During the council session, several recommendations were proposed, including the insertion of a form, GSTR-1A, to rectify missed tax period reporting. In a bid to reduce government litigation, monetary limits were suggested for various tribunals, such as Rs 20 lakh for the GST Appellate Tribunal.

Moreover, the council advised on the application of a 12% GST rate on different items like all types of sprinklers and solar cookers. It was also outlined that services like those offered by railways, such as battery-operated vehicles, would be exempt from GST payments.

Attended by prominent figures including Chief Ministers, Deputy Chief Ministers, and Finance Ministers from different states and Union Territories, the GST Council meeting signifies a collaborative effort to enhance India‘s taxation framework. The discussions reflected the importance of harmonizing tax rates and ushering in pragmatic reforms.