CBIC Issued Clarification Regarding GST Rates & Classification (Goods) Based on the Recommendations of the GST Council in Its 53rd Meeting

By: Admin Date: July 16, 2024 Categories: 53rd GST Council Meet | Notification & Circular

The CBIC issued Circular No. 229/23/2024-GST dated July 15, 2024, providing clarifications on GST rates and classification of goods, based on recommendations from the 53rd GST Council meeting held on June 22, 2024, in New Delhi.

Key Clarifications:

  1. GST Rate on Solar Cookers:
  • Dual-energy source solar cookers (solar energy and grid electricity) are classifiable under heading 8516 and attract a 12% GST rate as per SI. No. 201A of Schedule II of notification No. 1/2017-Central Tax (Rate) dated June 28, 2017.
  1. GST Rate on Fire Water Sprinklers:
  • All types of sprinklers, including fire water sprinklers, attract a 12% GST rate as per SI. No. 195B of Schedule II of notification No. 1/2017-Central Tax (Rate) dated June 28, 2017. Issues for the past period are regularized on an “as is where is” basis.
  1. GST Rate on Parts of Poultry-keeping Machinery:
  • Parts of poultry-keeping machinery are classifiable under tariff item 8436 91 00 and attract a 12% GST rate as per SI. No. 199 of Schedule II of notification No. 1/2017-Central Tax (Rate) dated June 28, 2017. The entry has been amended to specifically include ‘parts’ of poultry-keeping machinery. Issues for the past period are regularized on an “as is where is” basis.
  1. Scope of ‘Pre-packaged and Labelled’ for Agricultural Farm Produce:
  • Supply of agricultural farm produce in packages containing more than 25 kilograms or liters is excluded from ‘pre-packaged and labelled’ and will not attract the 5% GST levy. This definition has been amended in notifications No. 2/2024-Central Tax (Rate) and No. 3/2024-Central Tax (Rate) dated July 12, 2024. Issues for the past period are regularized on an “as is where is” basis.
  1. Supplies of Goods to or by Agencies Engaged by Government:
  • For supplies of pulses and cereals (in unit containers with a registered brand name) made to or by agencies engaged by the government for procurement and sale under approved schemes, issues for the period from July 1, 2017, to July 17, 2022, are regularized on an “as is where is” basis, subject to conditions:
    • Suppliers must furnish a certificate from a Deputy Secretary-level officer recommending the supplies made to or by an agency engaged by the government.
    • Input Tax Credit (ITC) shall not be allowed on such inputs, and if availed, it must be reversed within 180 days from the issuance of this circular.

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