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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 ..... e for provision of service 2. The matter has been examined. The issue-wise clarifications are discussed below: 3. Applicability of GST on Chhatua or Sattu: 3.1 Doubts have been raised regarding applicability of GST on Chhatua (Known as Sattu in Hindi Belt). 3.2 Chhatua or Sattu is a mixture of flour of ground pulses and cereals. HSN code 1106 includes the flour, meal and powder made from peas, beans or lentils (dried leguminous vegetables falling under 0713).Such flour improved by the addition of very small amounts of additives continues to be classified under HSN code 1106. If unbranded, it attracts Nil GST (S.No. 78 of notification 1126-F.T. dated 28.06.2017) and if branded and packed it attracts 5% GST (S. No. 59 of schedule I of notification 1125-F.T. dated 28.06.2017). 4. Applicable GST rate on Fish meal and other raw materials used for making cattle/poultry/aquatic feed: 4.1. Representations have been received seeking clarification regarding GST rate applicable on the other raw materials/inputs used for making cattle/poultry/aquatic feed. The classification dispute here is between the following two entries in the two notifications. The details are as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2936 coves vitamins and provitamins which are medicinal in nature and have much higher concentration of active substance. 5.3 Thus while deciding the classification of the products claimed to be animal feed supplements, it may be necessary to ensure that the said animal feed supplements are ordinarily or commonly known to the trade as products for a specific use in animal feeding. 5.4 A product deserves classification chapter 29 (equally applicable to heading 2936), if it is an item of general use, e.g., if a product is of specific use, say dietary supplement for human being product particularly suitable for a specific use rather than for general use. Vitamins and provitamins are normally covered under code heading 2936, but if they re prepared as food supplements in the form of tablets, etc. they would not be classifiable under this heading as the way they are presented, they are suitable for a specific use. Heading 2309 would cover items like feed supplements for animals that contain vitamins and other ingredients - such as cereals and proteins. These are covered in chapter 23 under heading code 2309, or antibiotic preparations used in animal feeding - for example a dried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Polypropylene Woven and Non-Woven Bags laminated with BOPP 7.2 As per the explanatory notes to the HSN to HS code 39.23, the heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products and includes boxes, crates, cases, sacks and bags. 7.3 Further as per the Chapter note to Chapter 39, the expression plastics means those materials of headings 39.01 to 39.14 which are or have been capable, either at the moment of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. 7.4 Thus it is clarified that Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP, would be classified as plastic bags under HS code 3923 and would attract 18% GST. 8. Applicability of GST on supply of wood logs for pulping: 8.1. Representation has been received seeking clarification on applicability of GST rate on wood log for pulping. Wood in the rough (whether or not stripped of bark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of 5% when value is upto ₹ 1000 per piece and 12% when the value exceeds ₹ 1000 per piece. 10.3 Earlier, vide Circular no. 16/2018-CGST dated 13.09.2018, it has been clarified that mere packing of fabrics into pieces of different lengths will not change the nature of these goods and such pieces of fabrics would continue to be classifiable under the respective heading as the fabric and attract the 5% GST rate. This clarification would equally apply to three pieces of fabrics sold in a pack as ladies salwar suit. Any embroidery on a fabric piece or certain embellishment thereon does not change the basic nature of their being a fabric. The chapter 63 covers garment, including the unstitched garments which may or may not be sufficiently completed to be identifiable as garments or parts of garments. However, heading 6307 would not cover a fabric pieces or a set of pre-packed fabric pieces, even if embroidered or embellished. Such set of fabric pieces would attract GST at the rate of 5%. 11. Applicability of GST on supply of Waste to Energy Plant: 11.1. Representations have been received regarding applicable GST rate on the goods used in the setting up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er this code irrespective of its use by Railways. Therefore, it is clarified that the turbo charger is classified under heading 8414 and attracts 18% GST. 13. Applicability of GST on supply of cranes, rigs, tools Spares and other machinery when moved from one state to another by a person on his account for there use for supply of service 13.1 As per Circular No. 22/2018 dated 13.09.2018, it was clarified that no IGST would be applicable on such interstate movements of rigs, tools spares and all goods on wheels. Doubts have been raised regarding applicability of GST on inter-state movement of machinery like tower cranes, rigs, batching plants, concrete pumps and mixers which are not mounted on wheels, but require regular means of conveyance (used by companies in Infrastructure business). 13.2 Any inter-state movement of goods for provision of service on own account by a service provider, where no transfer of title in such goods or transfer of goods to the distinct person by way of stock transfer is not involved, does not constitute a supply of such goods. Hence, it is clarified that any such movement on own account (not involving distinct person in terms of section 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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