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TMI Blog2019 (10) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... on 97 of CGST Act, 2017 read with Rule 104 of CGST Rules 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a proprietary concern and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of Classification of Pulpwood supplied to paper mills and the rate of tax (GST) thereon. 3. The applicant has furnished some facts relevant to the stated activity: a. The applicant is engaged in supply of debarked Eucalyptus, Acacia, Subabul, Casurina, Pine Pulpwood in billets of required size to paper mills based on their requirement. (dia 1 "(top) to 4" (botto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Forest Development Corporation Ltd, Bengaluru has issued internal advisory to charge 18% GST for supply of "wood in rough" (HSN Code 4403) interpreting this as pulp wood. e. The applicant submits that they have purchased substantial quantity of acacia, eucalyptus and pine pulp wood in the stock yard of M/s. Mysore Paper Mills Ltd, Bhadravathi (Karnataka) and have been delivering to paper mills outside Karnataka state. Provisionally, M/s. Mysore Paper Mills Ltd had agreed to charge 5% GST on the pulp wood lifted with a rider that the applicant would be required to pay the difference of 13% GST if it is clarified as 18% by the GST Council. However, the buyers from the applicant are insisting for charging GST at 5%. f. Hence, the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 5.3 The applicant has submitted a copy of the Purchase Order from Tamil Nadu Newsprint and Papers Limited. This purchase order provides for the specifications of the required wood to be supplied. The specifications are as follows: a) Debarked Acacia Pulpwood b) Length of the wood billets shall be 1.5 meter c) The minimum diameter shall not be less than 2 inches d) The maximum diameter shall not be more than 8 inches. Billets of diameter more than 8 inches is to be quartered by splitting and supplied. e) The supplies shall be free from crooked, twisted, bend and "Y" & "V" shaped bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard and fibre board and as fuel. Such waste and scrap includes saw mill or planning mill rejects; manufacturing waste, broken plank; old crates etc. Comparison of the specifications narrated by the applicant and the nature of goods covered under the heading clearly show that the instant goods would not be covered under the Heading 4401. 5.5 Heading 4403 covers Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared. Further the Explanatory Notes to this Heading provide as follows: This heading includes timber in the natural state as felled, usually with the branches lopped off, and such timber stripped of its outer or both its outer and inner bark or from which merely the rough protuberances have been removed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of veneer sheets, etc.; logs for the manufacture of match sticks, wood ware, etc." Thus, it is clarified that wood logs or any kind of wood in the rough/ timber, including the wood in rough/ log/ timber used for pulping falls under heading 4403 and attract GST at the rate of 18%. 5.8 The goods in question is verified and found that they are in the form of small logs (in the form of billets) and hence cannot be covered under HSN 4401. Hence they are squarely covered under the entry 4403 as clarified in the Circular No. 80/54/2018-GST dated 31-12-2018. 6. In view of the foregoing, we pass the following RULING The applicant is liable to pay CGST and SGST at the rate of 9 percent each by supply of debarked Eucalyptus, Acacia, S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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