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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 ..... nuts; ii. Classification and applicable GST rates on Tamarind seeds; iii. Coconut vs Copra; iv. Classification and applicable GST rate on Pure henna powder and leaves, having no additives; v. Scented sweet supari and flavored and coated illaichi; vi. Classification of Brewers' Spent Grain (BSG), Dried Distillers' Grains with 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d used for sowing . Thus, tamarind seeds, even if used for any purpose other than sowing, is liable to be classified under heading 1209 and hitherto attracted nil GST rate, irrespective of its use (for the period 01.07.2017 to 30.09.2021). 4.3 The GST council in its 45th meeting recommended GST rate on seeds, falling under heading 1209, meant for any use other than sowing to 5% (SI. No. 71A of schedule I of G.O. (Ms) No. 62 dated 29.06.2017, TN Notfn No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]) and Nil rate would apply only to seeds for this heading if used for sowing purposes Notification in SI. No. 86 of schedule of G.O. (Ms) No. 63 dated 29.06.2017, TN Notfn No.II(2)/CTR/532(d-5)/2017, dated 29.6.2017 [Issue No. 202). 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, Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable GST rates on flavored and coated illaichi, and scented sweet supari. 7.2 Scented sweet supari falls under tariff item 2106 90 30 as Betel nut product known as Supari and attracts GST rate of 18% vide entry at S. No. 23 of Schedule III of notification in G.O. (Ms) No. 62 dated 29.06.2017 TN Notfn No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]. 7.3 Flavored and coated illaichi generally consists of Cardamom Seeds, Aromatic Spices, Silver Leaf, Saffron, Artificial Sweeteners. It is distinct from illaichi or cardamom (which falls under heading 0908). It is clarified that flavored and coated illaichi is a value added product and falls under sub-heading 2106. It accordingly attract GST at the rate of 18% (S. No. 23 of schedule III of G.O. (Ms) No. 62 dated 29.06.2017 TN Notification No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]). 8. Applicability of GST on Brewers' Spent Grain (BSG), Dried Distillers' Grains with Soluble CDDGS1 and other such residues: 8.1 Representations have been received seeking clarification regarding classification and applicable GST rates on Brewers' spent grain (BSG), Dried distil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able rate of goods falling under heading 3006 that are not specifically mentioned in the Entry at S. No. 65 of Schedule II of G.O. (Ms) No. 62 dated 29.06.2017 TN Notification No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202] 9.3 Note 4 to Chapter 30 of the First schedule of the Custom Tariff Act, 1975 reads as follows: (a) sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; (b) sterile laminaria and sterile laminaria tents; (c) sterile absorbable surgical or dental haemostatics sterile surgical or dental adhesion barriers, whether or not absorbable; (d) opacifying preparations for X-ray examinations and diagnostic reagents designed to be administered to the patient, being unmixed products put up in measured doses or products consisting of two or more ingredients which have been mixed together for such uses; (e) blood-grouping reagents; (f) dental cements and other dental fillings; bone reconstruction cements; (g) first-aid boxes and kits; (h) chemical contraceptive preparations based on hormones, on oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .6.2017 [Issue No. 202] prescribes concessional rate of 5% for specified goods which are used in connection with specified petroleum operations. Condition 1 (d) in G.O. (Ms) No. 64 dated 29.06.2017, TN Notification No.II(2)/CTR/532(d-6)/2017, dated 29.6.2017 [Issue No. 202] prescribes that whenever goods so supplied are transferred to other licensee or sub-contractor a certificate from Directorate General of Hydrocarbons (DGH) is to be produced that the goods may be transferred to the transferee . 11.2. As per Section 7 read with Schedule-I of the TNGST Act 2017, inter-state stock transfer between distinct persons (establishment of same person located in two different states) is considered as 'supply 'of goods. 11.3. Representations have been received seeking clarification whether the original/ import Essentiality certificate can be used for such inter-state stock transfers or a fresh Essentiality certificate would be required for each inter-state stock transfer as it is being treated as supply subject to IGST. 11.4 GST Council deliberated upon this issue and a decision was taken that the original/ import Essentiality certificate, issued by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .O. (Ms) No. 72 dated 29.06.2017, TN Notification No.II (2)/CTR/532(d-14)/2017, dated 29.06.2017 [Issue No. 202], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent of the gross consideration charged for all such supplies, and the remaining thirty per cent of the gross consideration charged shall be deemed as value of the said taxable service. This mechanism for valuation of supply was recommended by the Council considering that it adequately represented the value of goods and services involved in the supply. 13.3 The GST Council has now decided to clarify that GST on such specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, for the period of 1st July, 2017 to 31st December, 2018, in the same manner as has been prescribed for the period on or after 1st January, 2019, as per the explanation in the G.O. (Ms) No.167, dated 31.12.2018 TN Notification No.II(2)/CTR/1099(e-12) /2018, dated 31-12-2018 [Issue No.425]. However, it is specified that, no refunds will be granted if GST already paid is more than the amount determined using this mechanism. 14. Applicability of GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
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