12% Uniform GST on Carton Boxes and Non-Corrugated Paper Boxes: 53rd GST Council Meeting Clarifies

GST - Carton Boxes and Non - Corrugated Paper Boxes - 53rd GST Council Meeting - TAXSCAN

The 53rd Goods and Service Tax (GST) Council Meeting clarifies a 12% uniform GST on carton boxes and non-corrugated paper boxes

The Union Finance Minister Nirmala Sitaraman presided over the 53rd meeting of the GST Council today (22nd June 2024) at New Delhi with Revenue Secretary and CBIC Chairman. The meeting commenced at 2:00 PM, however, the Finance Minister addressed the public in the evening.

Corrugated boxes and cartons, falling under heading 4819 attracted GST at the rate of 12% (entry 122 of 12% rate schedule), while other cartons falling under this heading attracted GST at the rate of 18%. Disputes have arisen as regards applicable GST on fiber drums, which is partially corrugated (as to whether it can be treated as corrugated or otherwise). This dispute gets resolved on account of the recommendation of the GST Council, in its 53rd meeting, to prescribe a uniform GST rate of 12% on all goods classifiable under heading 4819.

The Council clarified tax rates on specific goods, including a uniform 12% GST for carton boxes and non-corrugated paper boxes. Solar cookers will also benefit from a reduced 12% GST rate.

Uniform GST of 12% recommended on all carton boxes and cases of both corrugated and non-corrugated paper board (helping apple growers of J&K). All types of sprinklers including fire water sprinklers to attract 12%. 12% GST to be charged for all solar cookers whether or not single or dual energy source.

According to the GST regulations, corrugated boxes and cartons classified under heading 4819 attract a GST rate of 12% as per entry 122 of the 12% rate schedule. However, other types of cartons falling under the same heading are subject to a higher GST rate of 18%.

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