TMI BlogSale of Paper SludgeX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We are paper manufacturers and we wanted to know that the paper sludge waste is taxable or excempt under GST ? If taxable, what is the rate of Tax ? Please explain in details. Thanks in advance. Regards, Manjunath S - Reply By KASTURI SETHI - The Reply = In my view , it is not taxable in the GST regime. In pre-GST era, paper sludge was non-excisable good s and Board treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as exempted goods for the purpose of reversal of Cenvat Credit under Rule 6(3) of the Credit Rules, 2004 .The following case laws, Board's circular, notification can help you strongly in arriving at concrete decision in the GST regime. 2014 (303) E.L.T. 226 (Tri. - Del.) = 2014 (4) TMI 416 - CESTAT NEW DELHI MAGNUM VENTURES Versus COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular No. 1027/15/2016-CX, dated 25-4-2016 2015 (315) E.L.T. 444 (Tri. - Ahmd.) = 2013 (12) TMI 1507 - CESTAT AHMEDABAD J .K. PAPER LTD. Versus COMMISSIONER OF CENTRAL EXCISE, SURAT-I - Reply By Manjunath S - The Reply = Dear Sir, Thanks for your immediate reply. Whether Paper sludge fall in Exempted goods, or Zero rated, Please provide notification if any. If Paper sludge i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not taxable, then is it require to reverse ITC under rule 43 . Kindly guide. - Reply By KASTURI SETHI - The Reply = Chapter/Heading,namely, 198B 4707 Recovered waste or scrap of paper or paperboard ; has been inserted vide Notification No.34/17-CT(Rate) dated 13.10.17 attracting tax in the slab of 5%. But the above judgements pertaining to pre-GST era have held that Paper Sludge does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot fall under Chapter/Heading No. 4707 90 00. Hence in my view it is non taxable. Exempt supply also includes non-taxable supply. As per Section 2(47) of CGST ACT (47) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 , or under section 6 of the Integrated Goods and Services Tax Act, and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes non-taxable supply; Reversal is required under Rule 42 and 43 of CGST Rules . If you have any doubt, you can approach Advance Ruling Authority relying upon the above case laws and Board's circular. Classification of any product is rarely changed by the department as it is based on HSN which has international basis. - Reply By YAGAY andSUN - The Reply = In our view it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s taxable in GST regime as there is no concept enshrined. Further, paper sludge is supplied to card board manufacturer against consideration. - Reply By Sushil Kumar Khetan - The Reply = Supply against price is chargeable to GST @5%. - Reply By KASTURI SETHI - The Reply = Taxable @ 5% only if it is classifiable under Chapter/Heading/Sub-heading No.4707.90.00 Anyhow, difference of opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... always leads to healthy result whether in favour of assessee or not. - Sale of Paper Sludge - Query Started By: - Manjunath S Dated:- 3-6-2019 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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