TMI BlogClarification regarding GST rates & classification (goods)X X X X Extracts X X X X X X X X Extracts X X X X ..... in three pieces cloth for lady suits (ix) Waste to Energy Plant-scope of entry No. 234 of Schedule I of notification No.1/2017- Central Tax (Rate) dated 28.6.2017 (x) Turbo Charger for railways (xi) Rigs, tools Spares moving inter-state for provision of service 2. The matter has been examined. The issue-wise clarifications are discussed below: 3. Applicability of GST on Chhatua or Sattu: 3.1 Doubts have been raised regarding applicability of GST on Chhatua (Known as Sattu in Hindi Belt). 3.2 Chhatua or Sattu is a mixture of flour of ground pulses and cereals. HSN code 1106 includes the flour, meal and powder made from peas, beans or lentils (dried leguminous vegetables falling under 0713). Such flour improved by the addition of very small amounts of additives continues to be classified under HSN code 1106 . If unbranded, it attracts Nil GST ( S. No. 78 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 ) and if branded and packed it attracts 5% GST ( S. No. 59 of schedule I of notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017 ). 4. Applicable GST rate on Fish meal and other raw materials used for making cattle/poultry/aquati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom drugs. The dispute is in classification of Animal Feed Supplements/feed additives from drugs between tariff heading 2309 and 2936. 5.2 As per the HSN, 2309 interalia covers reading vitamins and provitamins which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health. On the other hand, HS code 2936 coves vitamins and provitamins which are medicinal in nature and have much higher concentration of active substance. 5.4 Thus while deciding the classification of the products claimed to be animal feed supplements, it may be necessary to ensure that the said animal feed supplements are ordinarily or commonly known to the trade as products for a specific use in animal feeding. 5.5 A product deserves classification chapter 29 (equally applicable to heading 2936), if it is an item of general use, e.g., if a product is of specific use, say dietary supplement for human being product particularly suitable for a specific use rather than for general use. Vitamins and provitamins are normally covered under code heading 2936, but if they re prepared as food supplements in the form of tablets, etc. they would not be classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 and shall, accordingly, attract a GST rate of 5%, with effect from 25.1.2018. 7. Applicability of GST on supply of Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP: 7.1 Representations have been received seeking the classification and GST rates on Polypropylene Woven and Non-Woven Bags and Polypropylene Woven and Non-Woven Bags laminated with BOPP. 7.2 As per the explanatory notes to the HSN to HS code 39.23, the heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products and includes boxes, crates, cases, sacks and bags. 7.3 Further as per the Chapter note to Chapter 39, the expression plastics means those materials of headings 39.01 to 39.14 which are or have been capable, either at the moment of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. 7.4 Thus it is clarified that Po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t like gota etc. The consumers buy these sets or pieces and get it tailored which entails cutting of fabric in shape and stitching thereof. Doubts have arisen as regards applicable rates on such three fabric pieces in sets/packs. 10.2 Fabrics are classifiable under chapters 50 to 55 and 60 of the First Schedule to the Customs Tariff Act, 1975 on the basis of their constituent materials and attract a uniform GST rate of 5%. Garments and made up articles of textiles under chapters 61 , 62 and 63 attract GST at the rate of 5% when value is upto ₹ 1000 per piece and 12% when the value exceeds ₹ 1000 per piece. 10.3 Earlier, vide Circular no. 13/13/2017-CGST dated 27th October 2017 , it has been clarified that mere packing of fabrics into pieces of different lengths will not change the nature of these goods and such pieces of fabrics would continue to be classifiable under the respective heading as the fabric and attract the 5% GST rate. This clarification would equally apply to three pieces of fabrics sold in a pack as ladies salwar suit. Any embroidery on a fabric piece or certain embellishment thereon does not change the basic nature of their being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e supplier are classifying turbo charges supplied to Railways under Chapter 86 and paying GST at the rate of 5% 12.2 The turbocharger is a turbine-driven forced induction device that increases an internal combustion engine's efficiency and power output by forcing extra compressed air into the combustion chamber. It has the compressor powered by a turbine. The turbine is driven by the exhaust gas from the engine. 12.3 Turbo charger is specifically classified under chapter HS code 8414 80 30. It continues to remain classified under this code irrespective of its use by Railways. Therefore, it is clarified that the turbo charger is classified under heading 8414 and attracts 18% GST. 13. Applicability of GST on supply of cranes, rigs, tools Spares and other machinery when moved from one state to another by a person on his account for there use for supply of service 13.1 As per Circular No. 21/21/2017-GST dated 22.11.2017 , it was clarified that no IGST would be applicable on such interstate movements of rigs, tools spares and all goods on wheels. Doubts have been raised regarding applicability of GST on inter-state movement of machinery like tower cranes, rigs, batc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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