GST Council Revamps Rates: Milk Cans, Solar Cookers, Sprinklers at 12%, Relief for Railways, Hostels

The 53rd GST Council meeting on Saturday saw revisions to tax rates on several items. Uniform 12% GST will now apply to all milk cans (steel, aluminum, etc.) and carton boxes (corrugated or non-corrugated). Presently, GST on carton boxes is 18 percent. This will benefit apple producers in Himachal Pradesh and Jammu and Kashmir.

Announcing the decisions taken at the meeting, the Union Finance Minister Nirmala Sitharaman said that the council also decided to imposed a 12% tax on sprinklers and all types of solar cookers. While a recommendation from the Standing Committee on Chemicals and Fertilizers to reduce tax on fertilizer-making chemicals was discussed, no decision was made. Currently, fertilizers have 5% GST, while constituent chemicals like sulfuric acid and ammonia have 18% GST.

Other key decisions included:

-Biometric Aadhaar authentication for GST registration to curb fraud.

-GST exemption for various railway services like platform tickets, retiring rooms, waiting rooms, etc.

-No penalty or interest on tax demand notices (2017-18 to 2019-20) if tax is paid by March 2025.

-Exemption from GST charges for hostels out of educational institutions, up to Rs. 20,000 per person per month, subject to the condition that the accommodation service is supplied for a minimum continuous period of 90 days.

-Revised thresholds for filing GST cases in courts: Rs. 20 lakh for GST Appellate Tribunal, Rs. 1 crore for High Court, and Rs. 2 crore for Supreme Court.

-To exempt Compensation cess on supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under Ministry of Defence.

The next GST Council meeting will be held after the budget presentation, said Sitharaman.