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Introduction To GST Rate
Several significant recommendations were presented at the 53rd Meeting of the GST Council, held on 22nd June 2024 and chaired by Union Finance Minister Nirmala Sitharaman. These recommendations primarily aimed to simplify the existing GST framework and alleviate compliance burdens across various sectors. The recommendations outlined in the meeting encompassed crucial decisions about the Indian Railways, the insurance sector, and e-commerce operators. Stakeholders need to note that these recommendations will be formalised by issuing relevant circulars, notifications, and amendments to existing laws, thereby holding legal authority.
The List of items under GST Slab Rates is below
| Items | Old Rate | New Rate |
| A uniform rate for all types of milk cans | – | 12% |
| A uniform IGST rate applies to imports of aircraft tool kits | – | 5% |
| Carton boxes and cases | 18% | 12% |
| All types of solar cookers | 5% | 12% |
| A uniform rate for all types of sprinklers | – | 12% |
| Indian Railways – Platform tickets | – | Exempt |
| Indian Railways – Facility of retiring rooms/waiting rooms | – | Exempt |
| Indian Railways – Cloakroom services | – | Exempt |
| Indian Railways – Battery Operated car services | – | Exempt |
| Hostel accommodation service under certain conditions | – | Exempt |
| Carton boxes | 18% | 12% |
| Indian Railways (Platform tickets, retiring rooms/waiting rooms, cloakroom services and battery-operated car services) | – | Nill |
| Hostel accommodation services for students and working professionals | – | Nill |
| Keytruda for cancer treatment | 12% | 5% |
| Vehicles equipped with retrofitting kits for disabled people | Applicability | 5% |
| IGST levied on goods sold at the Indo-Bangladesh border | Applicability | Nil |
The GST tax slab for Commodities is listed below
| Goods/Commodities | HSN Code | GST Rate |
| Milk | 401 | 0% |
| Egg | 407 | 0% |
| Unpacked Rice | 1006 | 0% |
| Unpacked Curd | 403 | 0% |
| Unpacked Lassi | 403 | 0% |
| Unpacked Buttermilk | 403 | 0% |
| Kajal | 3304 | 0% |
| Unpacked food grains | 1001 to 1106 | 0% |
| Unpacked paneer | 406 | 0% |
| Gur (jaggery) | 1701 or 1702 | 0% |
| Unpacked Natural honey | 409 | 0% |
| Fresh vegetables | 0701 to 714 | 0% |
| Fresh Fruits | 0803 to 0810 | 0% |
| Nuts | 802 | 0% |
| Fresh and Chilled Meat of bovine animals | 201 | 0% |
| Salt | 2501 | 0% |
| Unbranded Atta (flour) | 1101 to 1106 | 0% |
| Prasad (offerings made to deities) | 2106 | 0% |
| Unroasted Coffee Beans | 901 | 0% |
| Unprocessed Green Leaves of Tea | 902 | 0% |
| Fresh Ginger | 0910 11 10 | 0% |
| Fresh Turmeric | 0910 30 10 | 0% |
| Ultra-High Temperature (UHT) milk | 401 | 5% |
| Milk Food for Babies | 402 | 5% |
| Yoghurt | 403 | 5% |
| Pre-Packaged and Labelled Curd, Lassi, Buttermilk | 403 | 5% |
| Skins and Parts of Birds like Feathers | 505 | 5% |
| Beet Sugar, Cane Sugar, Jaggery | 1701, 1702, 1704 | 5% |
| Roasted Coffee Beans | 901 | 5% |
| Processed Tea | 902 | 5% |
| Packed Paneer | 406 | 5% |
| Spices | 0906 to 0910 | 5% |
| Packed and Labelled Rice | 1006 | 5% |
| All Packed Cereals | 10 | 5% |
| Coal | 2701 | 5% |
| All Types of Edible Oils | 1507 to 1518 | 5% |
| Raisins | 806 | 5% |
| Domestic LPG (liquefied petroleum gas) | 2711 12 00, 2711 13 00, 2711 19 00 | 5% |
| PDS kerosene (public distribution system kerosene) | 2710 | 5% |
| Cashew Nuts | 0801, 0802, 0813 | 5% |
| Fabric | 500, 5111 to 5113 & 5208 to 5212 | 5% |
| Products of coir | 5609 | 5% |
| Apparel and clothing accessories of sales value not exceeding INR 1000 | 61 or 6501 or 6505 | 5% |
| Glass Beads | 7018 | 5% |
| Charger or Charging Station for EV Operated Vehicles | 8504 | 5% |
| Fishery Products | 8902 | 5% |
| Condensed milk | 0402 91 10, 0402 99 20 | 12% |
| Butter | 405 | 12% |
| Cheese | 406 | 12% |
| Nuts and Dried Dates | 0801, 0802, 0804 | 12% |
| Dried Citrus Fruit | 805 | 12% |
| Fats of Bovine Animals | 1502 | 12% |
| Sausages | 1601 | 12% |
| Refined Sugar Cubes | 1701 91, 1701 99 | 12% |
| Packed Paneer | 406 | 12% |
| All Edibles Prepared or Preserved by Vinegar or Acetic Acid | 2002 | 12% |
| Packed and Labelled Tender Coconut Water | 2009 89 90 | 12% |
| Diabetic foods | 2106 90 91 | 12% |
| Packed Drinking Water in 20 Litre Bottles | 2201 | 12% |
| Marble and Granite Blocks | 2515, 1210, 2516 | 12% |
| Rubber bands | 4016 | 12% |
| Hand bags and shopping bags, of cotton and Jute | 4202 22 20, 4202 22 30 | 12% |
| Idols of Wood, Stone and Non-Precious Metals | 44, 68, 83 | 12% |
| Tableware and Kitchenware of wood | 4419 | 12% |
| Footwear of Sale Value Not Exceeding Rs.1000 Per Pair | 64 | 12% |
| Building Bricks | 6904 10 00 | 12% |
| Malt | 1107 | 18% |
| Vegetable saps and extracts | 1302 | 18% |
| Glycerol | 1520 00 00 | 18% |
| Waxes | 1521 | 18% |
| Chemically Pure Lactose, Maltose, Glucose, and Fructose | 1702 | 18% |
| Chocolate and Cocoa Products | 1804 to 1806 | 18% |
| Pastry Items | 1905 | 18% |
| Ice cream | 2105 00 00 | 18% |
| Non – Alcoholic Beverages | 2202 91 00, 2202 99 90 | 18% |
| Products Containing Nicotine | 2404 12 00 | 18% |
| Ores and Concentrates | 2601 to 2610 | 18% |
| Mineral or chemical fertilisers | 3102 to 3105 | 18% |
| Perfumes and toilet waters | 3303 | 18% |
| Caffeinated Beverages | 2202 99 90 | 28% |
| Carbonated Beverages | 2202 | 28% |
| Tobacco or Tobacco Substitutes | 2402 | 28% |
| Cement | 2523 | 28% |
| Air-conditioning Machines | 8415 | 28% |
| Monitors and Projectors | 8528 | 28% |
| Motor Vehicles | 8701 to 8704 | 28% |
New GST Tax Rates for Services are listed below
| Services | SAC Code | GST Rate |
| Educational Services | Heading 9992 or Heading 9963 | 0% |
| Services of General Insurance Business Provided Under Certain Schemes | Heading 9971 or Heading 9991 | 0% |
| Health Care Services | Heading 9993 | 0% |
| Services Provided by a Goods Transport Agency | Heading 9965 or Heading 9967 | 0% |
| Housekeeping Services Like Plumbing, Carpentering, etc | Heading 9954 | 5% |
| Restaurant Services | Heading 9963 | 5% |
| Outdoor Catering Services | Heading 9963 | 5% |
| Printing of Newspapers, Books, etc. | Heading 9988 | 5% |
| Construction of an apartment | Heading 9954 | 12% |
| Hotel accommodation | Heading 9963 | 12% |
| Transport of passengers by Air | Heading 9964 | 12% |
| Business Services for mining, petroleum crude or natural gas. | Heading 9983 | 12% |
| Construction of Commercial Apartments | Heading 9954 | 18% |
| Services in Retail Trade | Heading 9962 | 18% |
| Services in Wholesale Trade | Heading 9961 | 18% |
| Rental Services of Transport Vehicles | Heading 9966 | 18% |
| Postal and Courier Services | Heading 9968 | 18% |
| Electricity, Gas, Water and Other Distribution Services | Heading 9969 | 18% |
| Services Provided by a Casinos and Race Club | Heading 9954 | 28% |
| Gambling | Heading 9963 | 28% |
Indian GST Updates in the 53rd GST Council Meeting in June 2024
The following are the key points from the 53rd GST Council Meeting to ease the compliance burden on taxpayers:
1) Taxpayers can change GSTR-1 for the same tax period in the future. This will be enabled through a new form, GSTR-1A, allowing for adding or adding details missed out before filing GSTR-3B.
2) The threshold for reporting B2C interstate supplies in GSTR-1 will be reduced from Rs 2.5 lakh to Rs. 1 lakh.
3) The due date for filing GSTR-4 by composition taxable persons will be extended to June 30 2024, from FY 2024-25 onwards.
4) The TCS rate for Electronic Commerce Operators will be reduced from 1% to 0.5%.
5) GSTR-7 must be filed mandatorily, and no late fee will be charged for nil filing.
6) Taxpayers with an annual turnover of up to Rs. 2 crores will be exempted from filing GSTR-9/9A for FY 2023-24.
7) The time limit to avail ITC for invoices or debit notes will be deemed November 30 2021, for specified fiscal years.
8) Interest will not be charged on the amount available in the electronic cash ledger on the due date of filing GSTR-3B in cases of delayed filing.
9) Interest and penalties for demand notices issued u/s 73 of CGST will be waived for certain cases.
10) A common time limit will be set for issuing demand notices and orders without differentiating cases as fraud or non-fraud.
Other changes include:
11) Recommended monetary limits for filing appeals by the department before legal fora.
12) Reduction in the maximum amount for pre-deposit filing an appeal before appellate authorities and the GST Appellate Tribunal.
13) Addition of a sunset clause for anti-profiteering cases pending.
14) Modifying Section 112 to provide a 3-month time for filing appeals before the GST Appellate Tribunal.
15) Introducing a new provision for the regularisation of non-levy or short levy of GST due to common trade practices.
16) Introducing a mechanism for claiming a refund of additional IGST paid due to upward revisions in the price of goods after export.
17) Modifying Sections 16 and 54 to ensure IGST will not be refunded in specific cases where export duty is payable.
18) Additionally, biometric-based Aadhaar authentication will be conducted for certain applicants.
19) There is an upcoming DRC-03 Circular notification: A circular will be released to establish a process for adjusting any paid demand amount through DRC-03 against the pre-deposit amount for filing a GST appeal.
20) Section 122(1B) will be amended retrospectively, effective October 1, 2023. This amendment will clarify that the penal provision applies only to e-commerce operators required to collect TCS under Section 52 and not to other e-commerce operators.
Frequently Asked Questions (FAQs)
How is Goods and Services Tax (GST) classified in India?
GST is classified into four types – Central Goods and Services Tax (CGST), State GST (SGST), Integrated GST (IGST), and UTGST (Union Territory GST).
What is an Input tax credit or ITC?
ITC means Goods and Services Tax paid by a taxable person for the purchase of any goods or services used or intended to be used for business purposes.
What is the use of ITC?
ITC can be used to offset GST liability on the supply of goods and services by the registered person.
What is the GST rate on ‘Rakhi’?
Rakhi which is a form of ‘Raksha Sutra’ doesn’t attract any tax and Nil GST applies to it.
What is the GST rate and HSN Code for battery for mobile handsets?
Battery for mobile handsets attracts 28% GST and falls under the heading 8506.
What is the HSN code of Isabgol seeds and how much GST tax rate it attracts?
Fresh Isabgol seeds attract no GST, whereas dried or frozen Isabgol seeds attract 5% GST. The HSN Code for the Isabgol seeds falls under the heading 1211.
What is the main difference between the HSN Code and SAC code?
HSN Code applies to Goods or commodities, whereas the SAC applies to services.
What is the minimum limit to GST registration?
For businesses in the majority of the states, GST registration is required if the annual turnover of a business reaches Rs 20 lakhs (for services), and Rs 40 lakhs (for goods).
