Details of recommendations made with respect to GST on goods are summarized below.
I. Recommendations relating changes in GST rates of goods
|
S.No |
Goods |
Proposed |
Existing |
|
1. |
Parts, components for MRO activities of aircraft |
A uniform rate of 5% IGST to apply for imports of Parts,
components, testing equipment, tools and tool-kits of aircrafts
for, irrespective of their HS classification, to provide
necessary stimulus to routine maintenance activities of aircraft
industry (subject to specified conditions) |
GST on aircraft components and parts are at 18%, except
aircraft engines, pneumatic tyres and seats which stands at
5%.
|
|
2. |
Milk Cans |
All milk cans (made of steel, iron and aluminum) irrespective
of their use, to attract 12% GST |
Tanks, cans, drums and similar containers of Iron or steel used
for any material (7310) and cans of aluminum (7612) were taxed
at 18%. |
|
3. |
Solar cookers |
All solar cookers whether single or dual energy source, to
attract 12% GST.
|
Stoves, grates, cookers & similar non-electric domestic
appliances and parts thereof made of iron or steel (7321) are
taxed under 18% rate. Induction that can be classified under HSN
electro-thermic appliance used for domestic purpose (8516) is
taxed at 18%. Solar power based devices (chapter 85) is taxed at
12%. |
|
4. |
Carton boxes |
GST on carton boxes and cases of both corrugated and
non-corrugated paper or paper-board (4819) to be reduced to 12%
|
The existing GST rate for the said goods being
18% |
|
5. |
Sprinklers |
All types of sprinklers including fire water sprinklers to
attract 12% GST.
|
The entry for sprinkler is grouped along with drip irrigation
system (8424) taxed at 12%.
Fire sprinklers were classified along with Mechanical
appliances for projecting, dispersing or spraying liquids or
powders, fire extinguishers, attracting 18% GST. |
II. Recommendations for amendment broadening the coverage/scope of entry
|
S.No |
Goods |
Proposed |
Existing |
|
1. |
Parts of Poultry keeping machinery:
|
To amend existing entry for Poultry keeping Machinery
attracting 12% GST, to specifically include the term ‘parts of
Poultry keeping Machinery’ |
The entry for poultry keeping machinery is covered under 8436
along with Poultry incubators and brooders |
III. Recommendations extending the IGST exemptions
|
S.No |
Goods |
Proposed |
Existing |
|
1. |
Specified defence equipments:
|
To extend the IGST exemption on imports of ‘specified defence
equipments and parts’ for the defence forces, for a further
period of five years till 30th June, 2029. |
Notification No: 19/2019 dtd 06 July 2019, exempted the
import of specified defence equipment and parts when imported
by Ministry of defence, GOI or defence forces, from
whole of customs duty leviable (ie BCD,IGST and other
applicable taxes) for a period of 5 years that was valid till
01-07-2024 |
|
2. |
research equipment/buoys imported under RAMA programme |
To extend/bring back the IGST exemption on imports of
research equipment/buoys imported under the Monsoon Analysis
and Prediction (RAMA) programme subject to specified
conditions.
|
Original notification dtd 51/96 dtd 23-07-1996 provided
exemption to whole of additional duty leviable on import
of Scientific and technical instruments, apparatus &
equipment imported by Dept of Scientific and industrial
research.
On introduction of GST, MoF issued notification 43/2017 dtd
30-06-2017 replaced the world additional duty with IGST and
exempted the research equipments from IGST leviable. The amendment notification 42/2022 dt 13-07-2022, withdrew the exemption of IGST leviable on the said research equipments.
Presently, this proposed amendment intends to bring back the
IGST exemption on the prescribed research equipments |
|
3. |
Technical Documentation for rifle kits
|
To extend the IGST exemption available on imports of
technical documentation for AK-203 rifle kits, imported from
Russia, for Indian Defence forces.
|
Notification 19/2019 (dtd 06-07-2019) exempted from whole of
customs duty the
I) Parts, sub-parts, inputs for use in manufacture of
AK-203 rifle; (II) Machinery, Fixtures, Gauges, Tools and jigs for goods mentioned at (I) above. These exemption was available till 01.07.2024. Subsequently through notification 56/2023 dtd 15.09.2023, the entry was amended to include Technical documentation in respect of goods mentioned at (I) and (II) above. |
IV. Recommendations for exemption of Compensation cess leviable
|
S.No |
Goods |
Proposed |
Existing |
|
1. |
Imports into SEZ |
To exempt the Compensation cess leviable on imports into SEZ, by SEZ Unit/developers for authorized operations, with effect from 01.07.2017. |
It is to be noted that the IGST leviable for imports of goods/services into SEZ, was already exempted by a notification, since July 2017. |
|
2. |
Supplies of drinks & beverages by defence Unit run canteens
|
To exempt Compensation cess on supply of aerated beverages and
energy drinks to authorized customers by Unit Run Canteens,
under Ministry of Defence.
|
Exemption from CGST is already available for supplies by Canteen Store Department to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers by Notification no 07/2017 dtd 28.06.2017 |