TMI BlogClarification regarding applicability of GST on various goods and services.X X X X Extracts X X X X X X X X Extracts X X X X ..... Milk. 3.2. Milk is classified under heading 0401 and as per Sl. No. 25 of notification No. 2/2017(Rate) [FTX.56/2017/15 dated 29.06.2017], fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk falling under tariff head 0401 attracts NIL rate of GST. Further, as per HSN Explanatory Notes, milk enriched with vitamins and minerals is classifiable under HSN code 0401. Thus, it is clarified that toned milk fortified (with vitamins 'A' and 'D') attracts NIL rate of GST under HSN Code 0401. 4.1 Applicable GST rate on refined beet and cane sugar: Doubts have been raised regarding GST rate applicable on refined beet and cane sugar. Vide Sl. No. 91 of schedule I of notification No. 1/2017- (Rate) [FTX.56/2017/14 dated 29.06.2017], 5% GST rate has been prescribed on all kinds of beet and cane sugar falling under heading 1701. 4.2 Doubts seem to have arisen in view of Sl. No. 32 A of the Schedule Il of notification No. No. 1/2017- (Rate) [FTX.56/2017/14 dated 29.06.2017], which prescribes GST rate on All goods, falling under tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.3 Accordingly, supply of water, other than those excluded from Sl. No. 99 of notification No. 2/2017- (Rate) [FTX.56/2017/15 dated 29.06.2017], would attract GST at NIL rate. Therefore, it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. 7.1 GST rate on Human Blood Plasma: References have been received about the varying practices being followed in different parts of the country regarding the GST rates on human blood plasma . 7.2 Plasma is the clear, straw coloured liquid portion of blood that remains after red blood cells, white blood cells, platelets and other cellular components have been removed. As per the explanatory notes to the Harmonized System of Nomenclature (HSN), plasma would fall under the description antisera and other blood fractions, whether or not modified or obtained by means of biotechnological processes and would fall under HS code 3002. 7.3 Normal human plasma is specifically mentioned at Sl. No. 186 of List I under SI. No. 180 of Schedule 1 of the notification No. 1/2017- (Rate) [FTX.56/2017/14 dated 29.06.2017], and attracts 5% GST. Other items falling under HS Cod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or similar preparations. The HSN is reproduced as follows : The heading also excludes. Nonwoven, impregnated, coated or covered with substances or preparations [i.e. perfumes or cosmetics (Chapter 33), soaps or detergents (heading 3401), polishes, creams, or similar preparations (heading 3405), fabric, softeners (heading 3809)] where the textile material is present merely as a carrying medium. Further, HS code 3307 covers wadding, felt and non-woven, impregnated, coated or covered with perfumes or cosmetics. The HS code 3401, would cover paper, wadding, felt and non-woven impregnated, coated or covered with soap or detergent whether or not perfumed . 8.5 Further, as per the explanatory notes to the HSN, the heading 3307 includes wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics. Similarly, as per explanatory notes to the HSN, the heading 3401 includes wipes made of paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale. 8.6 Thus, the wipes of various kinds (as stated above) are classifiable under heading 3307 or 3401 depending upon their constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts GST rate of 5%, vide SI. No. 252 of Schedule I of the said notification. The Marine engine for fishing vessel falling under Tariff item 8408 1093 of the Customs Tariff Act, 1975 would attract a GST rate of 5% by virtue of SI. No. 252 of Schedule 1 of the notification No. 1/2017- (Rate) [FTX.56/2017/14 dated 29.06.2017]. 10.2 Therefore, it is clarified that the supplies of marine engine for fishing vessel (being a part of the fishing vessel), falling under tariff item 8408 10 93 attracts 5% GST. 11.1 Applicable GST rate on cotton quilts under tariff heading 9404-Scope of the term Cotton Quilt . 11.2 Cotton quilts falling under tariff heading 9404 attract a GST rate of 5% if the sale value of such cotton quilts does not exceed ₹ 1000 per piece [as per SI. No. 257 A of Schedule I of the notification No. 1/2017- (Rate) [FTX.56/2017/14 dated 29.06.2017]. However, such cotton quilts, with sale value exceeding ₹ 1000 per piece attract a GST rate of 12% (as per Sl. No. 224A of Schedule Il of the said notification), Doubts have been raised as to what constitutes cotton quilt, i.e. whether a quilt filled with cotton with cover of cotton, or filled with cotton but cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST. Further, friction material and articles thereof (for example, sheets, rolls, strips, segments, discs, washers, pads), not mounted, for brakes, for clutches or the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textiles or other mineral substances or of cellulose, whether or not combined with textiles or other materials are classifiable under heading 6813 and attract GST. 13.3 In the above context, it is mentioned that as per HSN Explanatory Notes, heading 8708 covers Brakes (shoe, segment, disc, etc.) and parts thereof (plates, drums, cylinders, mounted linings, oil reservoirs for hydraulic brakes, etc.); servo-brakes and parts thereof, while Chapter 68 covers articles of Stone, Plaster, Cement, Asbestos, Mica or similar materials. Further, HSN Explanatory Notes to the heading 6813 specifically excludes: (i). Friction materials not containing mineral materials or cellulose fibre (e.g., those of cork); (ii). Mounted brake linings (including friction material fixed to a metal plate provided with circular cavities, perforated tongues or similar fittings, for disc brakes) which are classified as parts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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