In the ever-evolving landscape of GST regulations, staying updated on the latest clarifications and amendments is crucial for businesses. Ensuring compliance and optimal tax planning is essential. Recently, the GST Council provided significant updates on GST rates and classifications for various goods. Here, we provide an in-depth look at these updates, helping you navigate through the changes seamlessly.
GST Rate on Solar Cookers
The GST Council has clarified that solar cookers operating on dual energy sources—solar energy and grid electricity—fall under tariff heading 8516. These cookers attract a GST rate of 12%, as specified in Schedule II of notification No. 1/2017-Central Tax (Rate) dated June 28, 2017.
GST Rate on Fire Water Sprinklers
The Council has addressed queries regarding fire water sprinklers. It confirmed that all types of sprinklers, including fire water sprinklers, are classified under tariff item 8424 89 and attract a GST rate of 12%. This clarification is crucial for businesses dealing in firefighting equipment to ensure accurate GST application.
GST Rate on Parts of Poultry-Keeping Machinery
Parts of poultry-keeping machinery are classified under tariff item 8436 91 00, attracting a GST rate of 12%. This clarification helps poultry businesses correctly classify their machinery parts, ensuring compliance with GST regulations.
Definition of ‘Pre-Packaged and Labelled’ for Agricultural Farm Produce
The GST Council has refined the definition of ‘pre-packaged and labelled’ for agricultural farm produce. Packages containing more than 25 kg or 25 liters of farm produce will not be considered ‘pre-packaged and labelled’ and thus will not attract a GST levy of 5%. This update is significant for agricultural producers and traders, impacting their tax liabilities.
Supplies Made to or by Government Agencies
Goods supplied to or by government agencies for distribution under various schemes are subject to specific GST treatments. Supplies made before July 17, 2022, are regularized on an “as is where is” basis. Further conditions apply to these transactions, including the requirement for certification from a competent authority and limitations on claiming input tax credit.
Conclusion
These updates from the GST Council provide much-needed clarity on various goods’ classifications and applicable GST rates. For businesses, understanding these changes is essential for compliance and efficient tax management. Stay informed and ensure your business adapts to these regulatory changes smoothly.
For more information please refer below circular :
LinkedIn Link : RMPS Profile
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
