TMI BlogClarification regarding GST rates and classification (goods).X X X X Extracts X X X X X X X X Extracts X X X X ..... s (ix) Waste to Energy Plant-scope of entry No. 234 of Schedule I of notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30/06/2017. (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. 38/1/2017-Fin(R C)(2/2017-Rate) dated 3006/2017) published in Extraordinary Official Gazette no. 3, Series I no. 13 dated 30/06/2017 and if branded and packed it attracts 5% GST (S. No. 59 of schedule I of notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c., attract 5% GST under S. No. 103 in notification No. 38/1/2017-Fin(R7C)(1/2017-Rate) dated 30/06/2017 5. Applicable GST rate on Animal Feed Supplements/feed additives from drugs: 5.1. Representations have been received seeking clarification regarding GST rate applicable on Animal Feed Supplements/feed additives from 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 covers 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), i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehold domestic consumers. 6.3 It is observed that the LPG stream for domestic LPG is differentially priced and packed differently from commercial LPG. The usage of LPG for domestic supply is known at the lime of supply being made by refiner/fractionators to OMCs. 6.4 Therefore, it is being clarified that LPG supplied in bulk, whether by a refiner/fractionator to an OMC or by one OMC to another for bottling and further supply for domestic use will fall under the S. No. 16.SA of the notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30/06/2017 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, ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rified Bagasse board [whether plain or laminated] falling under chapter 44 will attract concessional GST rate of 12%. 10. Applicability of GST on supply of embroidered fabric sold in three piece for lady suits: 10.1. Representations have been received seeking clarification regarding GST rate applicable on supply of embroidered fabric sold in three pieces fabric pack/set for lady suits (fabric for suit, salwar and dupatta). It has been informed that before becoming readymade articles or an apparel, the fabric is cut from bundles or thans and sold in that unstitched state with certain embellishment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier satisfy himself that goods falling under Chapter 84, 85 and 94, say a turbine or a boiler, required in a WTEP, would be used in the WTEP. In this context it is clarified that GST is to be self-assessed by a taxpayer. Therefore, he needs to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234. 12. Applicability of GST on supply of Turbo Charger for railways: 12.1. Representations have been received seeking clarification regarding classification and applicable GST rate on Turbo Chargers supplied to railways. It is stated that some of the 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 cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
