2020 (1) TMI 1510 - AAR - GST

Classification of goods - HSN Code - rate of GST - Copra i.e. edible dried coconut for human consumption - Copra i.e. inedible dried coconut for expression of coconut oil - Dried Coconut not used in expression of coconut oil - Dried Coconut used in expression of coconut oil - Desiccated Coconut that is dried and shredded flesh of coconut used for culinary purpose - HELD THAT - Notification No. 2/2017- Central Tax (Rate) 28 th June, 2017 at S.No. 47, the supply of goods Coconuts, fresh or dried, whether or not shelled or peeled are exempt from GST - supply of Copra other than of seed quality attracts GST @ 5% under the Notification No. 1/2017- Central Tax (Rate) 28th June, 2017 at S.No. 66. Desiccated coconuts - HELD THAT - Desiccated coconuts attracts GST @ 5 % under Notification No. 1/2017- Central Tax (Rate) 28 th June, 2017(as amended).

Summary

Issues:
Classification of Goods for GST Rate Determination

Analysis:
The applicant, a registered person, sought an advance ruling on the classification of goods related to coconut products for GST rate determination. The applicant raised concerns regarding the differentiation between dried coconuts used for human consumption and those used for milling purposes, emphasizing that the distinction based on usage is not appropriate for GST rate classification.

The questions on which the advance ruling was sought included the classification of goods to identify the Harmonized System of Nomenclature (HSN) codes for various coconut products such as copra for human consumption, copra for coconut oil extraction, dried coconuts not used for oil extraction, dried coconuts used for oil extraction, and desiccated coconut used for culinary purposes.

During the personal hearing, the applicant reiterated the submissions made in the application and requested an early disposal of the case. The jurisdictional officer provided detailed comments on the GST rates for different coconut products based on the HSN codes.

The findings, analysis, and conclusion of the Authority for Advance Ruling highlighted that fresh or dried coconuts, whether shelled or peeled, are exempt from GST as per Notification No. 2/2017. Copra other than of seed quality attracts a GST rate of 5%, while desiccated coconuts also attract a GST rate of 5%. Clarifications issued by the Government of India further supported the classification and GST rates for copra and dried coconut products.

In conclusion, the ruling determined that copra other than of seed quality attracts a GST rate of 5%, fresh or dried coconuts are exempt from GST, and desiccated coconuts attract a GST rate of 5%. The ruling provided clarity on the classification and applicable GST rates for various coconut products, ensuring compliance with the GST laws and regulations.