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TMI BlogClarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021 at LucknowX X X X Extracts X X X X X X X X Extracts X X X X ..... h Soluble [DDGS] and other such residues and applicable GST rate; vii. GST rates on goods [miscellaneous pharmaceutical products] falling under heading 3006; viii. Applicability of GST rate of 12% on all laboratory reagents and other goods falling under heading 3822; ix. Requirement of Original/import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) on each inter-State stock transfer of goods imported at concessional GST rate for petroleum operations; x. External batteries sold along with UPS Systems/Inverter; xi. Specified Renewable Energy Projects; xii. Fiber Drums, whether corrugated or non-corrugated. 2. The issue-wise clarifications are discussed in detail below. 3. Applicability of GST on fresh and dried fruits and nuts: 3.1 Representations have been received seeking clarification regarding the distinction between fresh and dried fruits and nuts and applicable GST rates. 3.2 At present, fresh nuts (almond, walnut, hazelnut, pistachio etc.) falling under heading 0801 and 0802 are exempt from GST, while dried nuts under these headings attract GST at the rate of 5%/ /12%. The general Explanatory Notes to Chapter 08 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of Schedule I of notification No. 38/ 1/2017-Fin(R C)(1/2017-Rate) dated 30-06-2017) and Nil rate would apply only to seeds for this heading if used for sowing purposes (S. No. 86 of schedule of notification No. 38/1/2017-Fin(R C) (2/2017-Rate) dated 30-06-2017). Hence, with effect from 1-10-2021, tamarind and other seeds falling under heading 1209 (i.e. including tamarind seeds), if not supplied as seed for sowing, would attract GST at the rate of 5%. 5. Clarification of definition of Copra: 5.1. Representations have been received seeking clarification regarding the definition of Copra and applicable GST rates. 5.2 As per Explanatory Notes to HS (2017 edition) to heading 1203, Copra is dried flesh of coconut generally used for the extraction of coconut oil. Coconut kernel turns into copra, when it separates from the shell skin, while still being inside the shell. The whole unbroken kernel could be taken out of shell only when it converts to copra. Once taken out of shell, copra could be supplied either whole or broken. 5.3. As per the Explanatory Notes to HS, the heading 0801 covers coconut fresh or dried but excludes Copra. Thus, exemption available to Coconut, fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e III of notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30-06-2017). 8. Applicability of GST on Brewers Spent Grain (BSG), Dried Distillers Grains with Soluble [DDGS] and other such residues: 8.1 Representations have been received seeking clarification regarding classification and applicable GST rates on Brewers spent grain (BSG), Dried distillers grains with soluble [DDGS] and other such residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets. 8.2 As per the Explanatory Notes to the HSN, heading 2303 includes residues of starch manufacture and similar residues (from maize (corn), rice, potatoes, etc.); beet-pulp; bagasse; other waste products of sugar manufacture; brewing or distilling dregs and waste, which comprises in particular - dregs of cereals obtained in the manufacture of beer and consisting of exhausted grains remaining after the wort has been drawn off; malts sprouts separated from the malted grain during the kilning process; spent hops; Dregs resulting from the distillation of spirits from grain, seeds, potatoes, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne reconstruction cements; (g) first-aid boxes and kits; (h) chemical contraceptive preparations based on hormones, on other products of heading 2937 or on spermicides; (i) gel preparations designed to be used in human or veterinary medicine as a lubricant for parts of the body for surgical operations or physical examinations or as a coupling agent between the body and medical instruments; and (j) waste pharmaceuticals, that is, pharmaceutical products which are unfit for their original intended purpose due to, for example, expiry of shelf-life. (k) appliances identifiable for ostomy use, that is colostomy, ileostomy and urostomy pouches cut to shape and their adhesive wafers or faceplates. 9.4 Thus, it is clarified that said entry 65 covers all goods as specified in Chapter Note 4 and Chapter Note 4 in turn covers all goods covered under Heading 3006. Therefore, said entry 65 covers all goods falling under heading 3006, irrespective of the fact that such goods are specifically mentioned in said entry. Therefore, all goods falling under heading 3006 attract GST rate of 12% under entry 65 in the 12% rate schedule. 10 . All laboratory reagents and other goods fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no need for taking a certificate every time on inter-state movement of goods within the same company/stock transfer so long as the goods are the same as those imported by the company at concessional rate. 11.5. The importer is required to maintain records and should be able to establish nexus between the stock transfer of goods and the description in the essentiality certificate. 12. GST rates applicable on External batteries sold along with UPS/System Inverter: 12.1 References have been received seeking clarification about whether, UPS Systems/inverter sold along with batteries as integral part are classified under heading 8507 at 28% GST or under heading 8504 at 18% GST. 12.2 The matter has been examined and it is observed that even if the UPS/inverter and external battery are sold on the same invoice, their price are separately known, and they are two separately identifiable items. Thus, this constitutes supply of two distinctly identifiable items on one invoice. Therefore, it is clarified that in such supplies, UPS/ inverter would attract GST rate of 18% under heading 8504, while external batteries would attract the GST rate as applicable to it under he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18%. Disputes have arisen as regards applicable GST on fibre drums, which is partially corrugated (as to whether it is be treated as corrugated or otherwise). This dispute gets resolved on account of the recommendation of the GST Council, in its 45th meeting, to prescribe a uniform GST rate of 18% on all goods classifiable under heading 4819 (with effect from 1st October, 2021 under S. No. 153A of Schedule III of notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30-06-2017). 14.2 For the period prior to 1-10-2021, the Council upon taking note of the fact that there was an ambiguity regarding the GST rates applicable on a Fibre Drums, because of its peculiar construction (partially corrugated), has decided that supplies of such Fibre Drums even if made at 12% GST (during the period from 1-7-2017 to 30-9-2021), would be treated as fully GST paid. Therefore, no action for recovery of differential tax (over and above 12% already paid) would arise. However, as this decision has only been taken to regularize the past practice in view of certain ambiguity, as detailed in para 14.1, no refund of GST already paid shall be allowed if already paid at 18%. 15. Difficulty, if any, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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