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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 ..... Dated Shimla-9 the 31st Oct., 2019. Madam/Sir, Subject: Clarification regarding GST rates & classification (goods)-reg. Various doubts have arisen in respect of applicable GST rates on the following items: (i) Classification of leguminous vegetables such as grams when subjected to mild heat treatment (ii) Almond Milk (iii) Applicable GST rate on Mechanical Sprayer (iv) Taxability of imported stores by the Indian Navy (v) Taxability of goods imported under lease. (vi) Applicable GST rate on parts for the manufacture solar water heater and system (vii) Applicable GST on parts and accessories suitable for use solely or principally with a medical device 2. Therefore, the issue wise clarifications are discussed below: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Sub heading 210690 as namkeens, bhujia, chabena and similar edible preparations and attract applicable GST rate. 4. Classification and applicable GST rate on Almond Milk: 4.1. References have been received as to whether "almond milk" would be classified as "Fruit Pulp or fruit juice-based drinks" and attract 12% GST under tariff item 22029920. 4.2. Almond Milk is made by pulverizing almonds in a blender with water and is then strained. As such almond milk neither constitutes any fruit pulp or fruit juice. Therefore, it is not classifiable under tariff item 22029920. 4.3. Almond milk is classified under the residual entry in the tariff item 22029990 and attract GST rate of 18%. 5. Applicable GST rate on Mechanical Sprayer: 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Clarification regarding taxability of imported stores by the Indian Navy: 6.1 Representation has been received from the Indian Navy seeking clarification on the taxability of imported stores for use of a ship of Indian Navy. 6.2 Briefly stated, in accordance with letter No.21/31/63-Cus-IV dated 17 Aug 1966 of the then Department of Revenue and Insurance, the Indian Naval ships were treated as "foreign going vessels" for the purposes of Customs Act, 1962, and the naval personnel serving on board these naval ships were entitled to duty-free supplies of imported stores even when the ships were in Indian harbour. However, in the GST era, no such circular has been issued regarding exemption from IGST on purchase of imported stores by I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der :- The importer, by the execution of bond, in such form and for such sum as may be specified by the Commissioner of Customs, binds himself, - (i) to pay integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item 1(b) or 5 (f) of Schedule II of the Himachal Pradesh Goods and Services Act, 2017; (ii) not to sell or part with the goods, without the prior permission of the Commissioner of Customs of the port of importation; (iii) to re-export the goods within three months of the expiry of the period for which they were supplied under a transaction covered by item 1(b) or 5 (f) of Schedule II of the Himachal Pradesh Goods and Services Act, 2017; (iv) to pay on demand an amount equal to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dated 30.09.2019 w.e. f 01.10.2019] to address the concerns raised. 8. Applicability of GST rate on parts for the manufacturesolar water heater and system: 8.1 Representations have been received seeking clarification on applicable GST rate on Solar Evacuated Tubes used in manufacture of solar water heater. While 5% GST rate applies to parts used in manufacture of Solar Power based devices (S.No. 234 of Notification No. 1/2017 -State tax (Rate) dated 30.06.2017), doubts have been raised in respect of parts of Solar water heaters on the ground that Solar Based Devices are being considered only as devices which run on Solar Electricity. 8.2 As per entry No 232, solar water heater and system attracts 5% GST. Further, as per S. No. 234 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods were not specifically mentioned in the GST rate notification, they fall under tariff item 9033 00 00 [residual entry] and should be assessed at 18% IGST. In this background, representations have been received from trade and industry, seeking clarification in this matter 9.3 The matter has been examined. As per chapter note 2(b) of the Chapter 90, parts and accessories of the instruments used mainly and principally for the medical instrument of chapter 90 shall be classified with the machine only. Chapter note 2(b) (of Chapter 90) reads as below: - "2 (b): other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instruments or apparatus, or with a number of machines, instruments ..... X X X X Extracts X X X X X X X X Extracts X X X X
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