The Central Board of Indirect Taxes & Customs (CBIC) cited the rate notification for goods, ballpoint pens and fountain pens, school bags, and printed books will all draw Goods & Services Tax at 18%.
At the 56th GST council meeting on September 1, suggestions from the notification were revealed. The 28 States and 3 Union Territories can specify the rates to ensure that the updated rates come into force from September 22. The new rate chart for around 1,200 kinds of goods has been introduced in 7 schedules. As per the experts, the industry must focus on execution.
GST Rate After Council Meeting
Ballpoint pens, felt-tipped and other porous-tipped pens and markers, fountain pens, stylo graph pens, and other pens will continue to draw an 18% GST (9 per cent CGST and 9 per cent SGST), based on the rate chart. From 12% to Nil the GST on pencils (including propelling or sliding pencils), crayons, pastels, drawing charcoals, writing or drawing chalk, and tailors’ chalk, and chalk sticks has been reduced.
There will be an 18% rate on the fountain pens, school bags (school satchels), trunks, suitcases, vanity-cases, executive-cases, brief-cases, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters, and similar containers and travel bags.
There are issues with the printed books. An 18% rate has been levied on the uncoated paper, a key input for printed books, as per the rate chart. As per the industry sources and tax experts, an exemption will be available in this paper utilised for exercise books, graph books, laboratory notebooks, and notebooks, though in the exempted list, no mention of printed books is made. It implies that on the uncoated paper and paper boards which is used for the printed books, an 18% GST shall be charged.
New GST Rates
As per the experts, with the publication of two sets of frequently asked questions (FAQ) and rate notifications, the industry must focus on implementation. Industries must align their ERP systems, pricing decisions, and supply chains. The same alignment is important to ensure the seamless execution and to provide the advantages of the same rationalisation of rate is provided before the end consumer.
Tax expert, the rate notifications show the policy direction communicated before and reaffirm the devotion to transparency, consistency, and timely implementation. The same measure specifies that all formalities are now finished, permitting the business to concentrate on execution.
Recommended: New List of GST Rates & HSN Codes on All Stationery Items
Tax expert feels the declaration for the revised rates effective September 22, along with the product-wise details & HSN, gives businesses the clarity and lead time required to evaluate system updates, undertake credit evaluations, and make critical supply chain adjustments.
Now that the rate and exemption notifications have been officially released, the corresponding changes have been codified in law, giving taxpayers a solid legal foundation to confidently affirm and execute the reforms.
