The Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. The Council, Inter alia, reduced the GST Rate of Pencil Sharpeners from 18% to 12%, in an attempt to rationalize the rates.
The GST Council Meeting is a forum where the Union Finance Minister and the Finance Ministers of all the States and Union Territories (UTs) come together to discuss GST-related issues, review GST rates, and make policy decisions.
The GST (Goods and Services Tax) rate for pencil sharpeners depends on the type of pencil sharpener and the applicable HSN (Harmonized System of Nomenclature) code under GST.
For manual pencil sharpeners, the GST rate was 18%, with an HSN code of 8214.10.00, which has now been brought down to the 12% Slab.
For electric pencil sharpeners, the GST rate is 28%, with an HSN code of 8509.80.00. However, the rate of such electric sharpeners remain unchanged as they have not been mentioned.
In other attempts to rationalize tax and ease the burden of GST, the Council also reached a consensus on the following: –
The Goods and Services Tax (GST) Rate of Liquid Raab or Rab Jaggery has been slashed from 18% to Nil for loose sales and for pre-packaged and labeled Raab to 5%.
In addition, the council has decided to regularize payment of GST on Rab Jaggery during the past period on “as is basis” due to genuine doubts over its classification and applicable GST rate.
In addition, the council has decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
The council has also decided to amend notification No. 104/94-Customs to provide nil IGST treatment for devices like tag-tracking device or data logger already affixed on a container, subject to existing conditions.
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