The finance ministry made a number of announcements during the February GST Council meeting. The centre changed the GST rates for a number of things stationary and exam institutions. The Council then announced that the new Tax rates would go into effect on March 1.

The following is a list of GST changes that merchants and customers need to be aware of:

GST Council has cut the tax rate on many items, including 'Rab' (liquid jagger) and pencil sharpeners, besides rationalising late fees for the delayed filing of annual returns. As announced by the finance minister, the GST rate for pencil sharpeners would increase to 12% from March 1. Previously, it was 18%.

If a device like a tag-tracking device or data logger is already affixed on a container, no separate IGST would be levied on the affixed device and the ‘nil’ IGST treatment available for the containers would also be available to them.

The GST rate on liquid jaggery has been slashed from 18% to Nil if sold loosely. And, if pre-packaged and labelled, it will attract 5% GST. If a device like a tag-tracking device or data logger is already affixed on a container, no separate IGST would be levied on the affixed device and the ‘nil’ IGST treatment available for the containers would also be available to them.

For registered persons with an annualised turnover of up to 20 crore and who file annual returns in Form GSTR-9 after 2022–23, the Centre has also rationalised late costs.

The late fee for registered persons with an annual turnover of up to 5 crore will be 50 per day, up to a maximum of 0.04% of annual turnover.  The levies will be Rs.100 per day, subject to 0.04% of the turnover, in the case of more than Rs.5 crore and up to Rs.20 crore.

Any authority established by the Central or State governments for the conduct of entrance examinations for admission to educational institutions "shall be treated as an educational institution for the limited purpose of providing services by way of conducting entrance examinations for admission to educational institutions," the government stated in another notification. GST exemption available to educational institutions and central and state boards for organising entrance exams will be available to the respective authority.

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