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2022 (12) TMI 949 - AAR - GSTClassification of goods - HSN Code - applicable rate of tax - Raula Gundi - HELD THAT:- The resultant product of the applicant is a combination of various ingredients/raw materials intended for chewing needs. The predominant ingredient is 'Tobacco dust' which constitutes about 50% of the product and other ingredients are added to it as per required proportion to make it consumable. In the process of manufacturing the product, the raw materials used by the Applicant undergo a set of processes and emerge as 'Chewable Tobacco Gundi' which is marketable/consumable. Therefore, the product prepared and sold by the Applicant is a “Manufactured Tobacco product for chewing”. Once it is held that the product is 'Manufactured Chewing Tobacco', the classification of the product is under HSN Code 24039910 which specifies 'Chewing Tobacco' under the head “2403-Other manufactured tobacco”. Further, as per Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, the said item appears at Sr. No. 15 of Schedule-IV of the said notification [on which GST liability is 28%. As per Notification No.01/2017-Compensation Cess(Rate) dated 28.06.2017, Chewing Tobacco (without lime tube) appears at SI. No.26 of the said notification (on which Compensation Cess is 160%) . Furthermore, it may be noted that the value for the purpose of GST computation will be the transaction value plus basic excise duty, NCCD and any other amount as prescribed in section 15 of the GST Act, 2017.
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