TMI Blog2023 (3) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material for production of sugar, molasses etc. - Since all the three Conditions of agricultural produce is not fulfilled by sugarcane juice and hence it is not considered to be agricultural produce. Sugarcane is usually a type of grass/plant, sugarcane is not the result of flowering plant nor does it develop through seeding. So sugarcane can not be considered as fruit. Sugarcane fiber and stalks can not be eaten or digested, so it does not qualify as a vegetable either. In GST Tariff, goods under chapter 20 is preparation of vegetables, fruits, nuts or other parts of plants Sugarcane as neither fruit nor vegetable nor nuts but it is covered under other parts of plants. The Tariff item 2009 contains specific description of Fruit and Vegetable Juices Sugarcane is neither fruit nor vegetable nor nuts but it is covered under other parts of plants as such Rule 3(a) of General Rules for the Interpretation of Import Tariff will apply and the same merits classification under HSN 20098990 - Hence sugarcane juice is classified under chapter 20 and tariff item 20098990 which falls in Notification No. 1/2017 Central Tax (Rate) dated 28-06-2017 covered in schedule 2, Sr. No. 41 and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Any). 5. The applicant have submitted their interpretation of law as under- (1) We M/s Gobind Sugar Mills Ltd. having GST No-09 AABCG0947NIZA involved in Manufacturing of Sugar and Molasses. The main raw material used in manufacturing of sugar is Cane. We purchase sugar cane directly from farmers and extract juice from the sugarcane and after further processing we manufactured sugar and the remaining juice is sold as Molasses. We paid GST @ 5% on our finish Product i.e. Sugar and @ 28% on Molasses i.e. our by product emerges during the production of Sugar. (2) Now further we are going to sold sugarcane juice without doing any further process to distilleries where they manufactured Ethanol falling under Chapter heading 2207 attract GST @5%. Only raw material for manufacturing of Sugar is sugarcane, falling under Chapter Heading 1212 and attract Nil rate of GST, and also classified under agriculture produce. (3) Relating to Services Classification of Goods under the definition of agricultural produce. In view of the Notification No.2/20I7-Central Tax (Rate) most of the items related to agricultural produce or of the said category has been classified under the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from sugarcane is Sugar Syrup which is classified under Chapter-17 and HSN Code-17022090 on which GST @18% (SGST 9% + CGST 9%) will be applicable. (ii) GST @18% (SGST 9% + CGST 9%) will be applicable as noted in point-1 above. 7. The applicant was granted a personal hearing on 12.01.2023 which was attended by Mr. Dharmendra Roy, CFO Shri Satyajeet Tripathi AGM (Indirect Taxation) Authorized Representatives during which they reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 9 We have gone through the submissions made by the applicant and have examined the interpretation submitted by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ane and hence not produced by farmer. Also process changes it's form and constitution alongwith changes are of such nature that if it is to be attain the secondary market for use and become raw material for production of sugar, molasses etc. Since all the three Conditions of agricultural produce is not fulfilled by sugarcane juice and hence it is not considered to be agricultural produce. The next question arises that if it is not agricultural produce how will it be classified. In this context study shows that sugarcane is neither a fruit nor a vegetable. Sugarcane is usually a type of grass/plant, sugarcane is not the result of flowering plant nor does it develop through seeding. So sugarcane can not be considered as fruit. Sugarcane fiber and stalks can not be eaten or digested, so it does not qualify as a vegetable either. In GST Tariff, goods under chapter 20 is preparation of vegetables, fruits, nuts or other parts of plants Sugarcane as neither fruit nor vegetable nor nuts but it is covered under other parts of plants. Chap heading 2009 is as follows. Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ription of Goods (1) (2) (3) 41 2009 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter. 14. Hence we are of the considered views that the Sugarcane Juice merits to be classified under heading 20098990. 15. In view of the above discussions, we, both the members unanimously rule as under; RULING Question 1. Classification of Sugar Cane Juice. Answer : Sugarcane juice is classifiable under chapter 20 and tariff item 20098990. Question 2. Rate of GST applicable on sale of Sugarcane Juice. Answer : Sugarcane Juice is taxable at a rate of 6% CGST 6% SGST or 12 % IGST Question 3. Applicability of a notification which affects the rate of tax (If Any). Answer : Notification no 1/2017 central tax (rate) dated 28/6/2017 would be applicable. 17. This ruling is valid only within the jurisdiction of Authority for Advance Ruling Uttar Pradesh and subject to the provisions under Section 103(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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