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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 ..... ds 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 classification. 3.2. Dried leguminous vegetables are classified under HS code 0713. As per the explanatory memorandum to the HS 2017, the heading 0713 covers leguminous vegetables of heading 0708 which have been dried, and shelled, of a kind used for human or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitutes 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-6% to notification No. 1125-F.T. [1/2017-CTR] dated 28.06.2017]. The entry No. 195B was inserted vide notification No. 134-F.T. [6/2018- CTR] dated 25th January, 2018. 5.2 All goods of heading 8424 i.e. [Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; spra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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). Similar exemption has not been specifically provided for Navy. 6.3 Indian Naval ship stores are exempted from import duty in terms of section 90(1) of the Customs Act, 1962. Further, as per section 90(2), goods "taken on board a ship of the Indian Navy" shall be construed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 production taken on lease by the importer for use after import have also been exempted from IGST vide S. No. 557A of the said notification. Subsequently, all goods, vessels, ships (other than motor vehicles) imported under lease, by the importer for use after import, were also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 of Schedule I-2.5% of Notification No. 1125-F.T. [1/2017 -CTR] dated 28.06.2017, solar water heater and system attracts 5% GST. Further, as per S. No. 234 of Schedule I-2.5% of Notification No. 1125-F.T. [1/2017 -CTR] dated 28.06.2017, 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 on the energy derived from Sun (in form of electricity or heat). Thus, solar water heater and system would also be covered under S. No 234 of Schedule I-2.5% of Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 note 2(b), parts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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