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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 ..... s: (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. The issue wise clarifications are discussed below: 3. Classification of leguminous vegetables when subject to mild heat treatment (parching): 3.1. Doubts have been raised whether mild heat treatment of leguminous vegetables (such as gram) would lead to change in classific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether "almond milk" would be classified as "Fruit Pulp or fruit juice-based drinks" and attract 12% GST under tariff item 2202 99 20. 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 2202 99 20. 4.3. Almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%. 5. Applicable GST rate on Mechanical Sprayer: 5.1 Representations have been received seeking clarification on the scope and applicable GST rate on "mechanical sprayers" of entry No. 195B of the Schedule II to notification No. 1/2017- Central Tax (Rate), dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 Indian Naval ships. The doubt has arisen as there is a no specific exemption, while there is a specific exemption for the Coast Guard (vide S. No. 4 of notification No. 37/2017-Customs dated 30.6.2017) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e IGST Act, 2017 on supply of service covered by item 1(b) or 5 (f) of Schedule II of the Central 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 Central Goods and Services Act, 2017; (iv) to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions. 7.3 Similarly, rigs and ancillary items imported for oil or gas exploration and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable 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 -Central tax (Rate) dated 28.06.2017), 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 of the notification No. 1/2017-Central Tax (Rate) dated 28.6.2017, solar power-based devices and parts for their manufacture falling under chapter 84, 85 and 94 attract 5% concessional GST. Solar Power based devices function o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind;" 9.4 Thus, as per chapter no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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