Important Keyword: UTGST Notification 02/2024, Union Territory GST Rate, Amendment to Notification 1/2017, GST on cartons and cans, Solar cookers GST, Finodha GST FAQs,
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[F. No. 190354/94/2024-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 12th July, 2024
Notification No. 02/2024 – Union territory Tax (Rate): Seeks to amend notification No. 1/2017 – Union Territory Tax (Rate)
GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 1/2017-Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 710(E)., dated the 28th June, 2017, namely:-
In the said notification, –
- in Schedule II – 6%, –
- after serial number 121 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-
| “121A | 4819 10, 4819 20 | Cartons, boxes and cases of, – corrugated paper or paper board; or non-corrugated paper or paper board”; |
- after serial number 180 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| “180A | 7310, 7323, 7612, or 7615 | Milk cans Aluminium”; | made | of | Iron, Steel, or |
- after serial number 183 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| “183A | 7321 or 8516 | Solar cookers”; |
- against serial number 199, in column (3), after the word “brooders”, the words and symbol “; parts thereof” shall be inserted;
- in Schedule III – 9%, –
- for serial number 153A and the entries relating thereto, the following serial number and entries shall be substituted, namely: –
| “153A | 4819 (except 4819 10, 4819 20) | All Goods (other than Cartons, boxes and cases of, – |
| corrugated paper or paper board; or non-corrugated paper or paper board)”; |
- against serial number 224, after the word “equipment”, the words and symbols “; other than Milk cans made of Iron, or Steel ” shall be inserted;
- against serial number 235, in column (3), at the end, for the words, “and wood burning stoves of iron or steel”, the words, “, wood burning stoves of iron or steel, and solar cookers” shall be substituted.
- against serial number 273, after the words “boxes, etc.”, the words and symbols “; other than Milk cans made of Aluminium” shall be inserted.
- against serial number 275A, after the words “Utensils”, the words and symbol “; Milk cans made of Aluminium” shall be inserted;
- against serial number 378A, in column (3), for the words and symbol “domestic purposes;” , the words, symbol and brackets “domestic purposes [other than solar cookers];” shall be substituted;
- after the Schedule VII, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:-
“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 liter shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”.
2. This notification shall come into force from the 15th day of July, 2024.
(Nitish Karnatak)
Under Secretary
Note: – The principal notification No. 1/2017-Union territory Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th June, 2017, and was last amended vide notification No. 01/2024 – Union territory Tax (Rate), dated the 3rd January, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 12(E), dated the 3rd January, 2024.
📚 Frequently Asked Questions (FAQs): Notification No. 02/2024 – Union Territory Tax (Rate)
Q1: 📜 What is Notification No. 02/2024 – Union Territory Tax (Rate) all about?
Answer:
Notification No. 02/2024-Union Territory Tax (Rate), issued on 12th July 2024, amends Notification No. 1/2017 to revise UTGST rates on specific goods such as cartons, milk cans, solar cookers, and agricultural produce packaging. It takes effect from 15th July 2024.
Q2: 📦 Which items are newly added to the 6% UTGST rate under Schedule II?
Answer:
Newly included items under the 6% slab include:
👉 Cartons, boxes, and cases made of corrugated or non-corrugated paperboard (HSN: 4819 10, 4819 20)
👉 Milk cans made of iron, steel, or aluminum (HSN: 7310, 7323, 7612, 7615)
👉 Solar cookers (HSN: 7321 or 8516)
Q3: 🔧 What modifications have been made to Schedule III (9%) items?
Answer:
Several refinements include:
✅ Exclusion of specified cartons from 4819
✅ Removal of milk cans from broader equipment categories
✅ Adjustment in classification for solar cookers and wood-burning stoves
✅ Clarifications for aluminum milk cans and domestic solar cookers
Q4: 🚜 What change was introduced regarding agricultural produce packaging?
Answer:
The amendment clarifies that farm produce in packages over 25 kg or 25 liters will not be treated as “pre-packaged and labelled” under GST, thereby exempting them from UTGST.
Q5: 🧾 When will these revised UTGST rates come into effect?
Answer:
All the changes prescribed under Notification No. 02/2024-Union Territory Tax (Rate) will be applicable from 15th July 2024.
Q6: 🤔 How does this affect manufacturers and traders of cartons or milk cans?
Answer:
They can now benefit from reduced UTGST rates (6%) for eligible products, making pricing more competitive and compliance clearer. For professional GST guidance, connect with a GST Expert at www.Finodha.in.
Q7: 💼 Are solar cookers now taxed differently?
Answer:
Yes. Solar cookers are shifted to the 6% slab, previously clubbed with 9% items. This aligns with sustainability goals. Want to register your eco-friendly product business? Visit https://finodha.in/online-gst-registration/.
Q8: 🛠️ Is there any change in the treatment of parts of brooders?
Answer:
Yes, the phrase “parts thereof” was added against brooders in Schedule II, clarifying taxability of their components too.
Q9: 🧃 Are all types of packaged commodities above 25 kg/ltr exempt now?
Answer:
Only agricultural farm produce in packages over 25 kg or 25 liters is exempt from being classified as “pre-packaged and labelled,” under the Legal Metrology Act.
Q10: 📝 Where can I get help with GST compliance and UTGST updates?
Answer:
Finodha offers complete GST support, including GST return filing, UTGST registration, and audit preparation. Visit:
✅ GST Compliance: https://finodha.in/gst-compliance/
✅ GST Return Filing: https://finodha.in/gst-return-filing/
✅ MSME/Startup Support: https://finodha.in/setup-business/
📎 Summary:
Notification No. 02/2024-Union Territory Tax (Rate) brings targeted revisions to the UTGST rate structure. It focuses on rationalizing rates for environmentally significant items like solar cookers, simplifying classification for cartons and cans, and supporting agriculture through packaging exemptions. These changes promote transparency and support small businesses.
🧠 Final Thoughts:
Stay updated on GST changes with Finodha’s expert advisory. If you’re a trader or manufacturer impacted by these UTGST changes, visit www.Finodha.in for registration, compliance, and tax-saving strategies tailored for you.
Download PDF: Notification No. 02/2024 – UTGST
More Information: https://taxinformation.cbic.gov.in/
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