GST applicability on sale of Malt spirit, Goods and Services Tax - GST

[KARAN VERMA]

Sir

Whether GST applicable on sale of Malt spirit. If yes what is GST rate and HSN code.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view HSN code may be 2203 or 2207

[KARAN VERMA]

ok, what about applicability of GST ON MALT SPIRIT.

[Ganeshan Kalyani]

1) HSN: 2207 - Ethyl alcohol and other spirits, denatured, of any strength [[other than ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol)]] – GST @18%

2) HSN 2207: Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol) – GST @ 5%

[KASTURI SETHI]

As per judgement of Bombay High Court in the case of UNITED SPIRITS LTD. Versus COMMR. OF CUS. (IMPORT), MUMBAI reported as 2009 (240) E.L.T. 513 (Bom.) = 2009 (6) TMI 23 - BOMBAY HIGH COURT, (there are other case laws also), Malt Spirit is un-denatured ethyl alcohal which is essence. It is concentrate. On this basis, it is classifiable under Chapter/Heading No.2207. Sub-heading wise break-up is given below

2207 UNDENATURED ETHYL ALCOHOL OF AN ALCOHOLIC STRENGTH BY VOLUME OF 80% VOL. OR HIGHER; ETHYL ALCOHOL AND OTHER SPIRITS, DENATURED , OF ANY STRENGTH

220710-Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher:

---Rectified spirit :

22071011---Concentrates of alcoholic beverages/150%-

22071019---Other/150%-

22071090---Other/150%-

22072000-Ethyl alcohol and other spirits, denatured, of any strength.

As per R.K.Jain' GST Tariff, Chapter/Heading/Sub-heading nos. 2207 10. 11, 2207 1019, 2207 1090 are Non-GST products. Therefore, correct classification can be ascertained on the basis of composition of Malt Spirit being manufactured/supplied by the assessee.

Pl. note that Malt Spirit is undenatured ethyl alcohol. Hope this will help you to arrive at correct and concrete decision.

[KARAN VERMA]

Thank you Sir, in our case Malt spirit having alcoholic strength about 60% which is going to be used for Whisky production.