Clarification regarding GST rates & classification (goods)–reg.

15

Oct

Clarification regarding GST rates & classification (goods)–reg.

Oct 15 2019 Download Author: Shobhana Srivastava GST Input Tax Credit 23

Classification of leguminous vegetables when subject to mild heat treatment (parching):

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 animal consumption (e.g., peas, chickpeas etc.)

They may have undergone moderate heat treatment designed mainly to ensure better preservation by inactivating the enzymes (the peroxidases in particular) and eliminating part of the moisture

Thus, it is clarified that such leguminous vegetables which are subjected to mere heat treatment for removing moisture, or for softening and puffing or removing the skin, and not subjecting to any other processing or addition of any other ingredients such as salt and oil, would be classified under HS code 0713

Such goods if branded and packed in a unit container would attract GST at the rate of 5%

In all other cases such goods would be exempted from GST

However, if the above dried leguminous vegetable is mixed with other ingredients (such as oil, salt etc) or sold as namkeens then the same would be classified under Sub heading 2106 90 as namkeens, and similar edible preparations and attract applicable GST rate.

 

Classification and applicable GST rate on Almond Milk:

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.

Almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%

Applicable GST rate on Mechanical Sprayer:

All goods of heading 8424 i.e. [Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; spray guns and similar appliances;

 

steam or sand blasting machines and similar jet projecting machines attracted GST @18% [S.No.325 of Schedule III] till 25th January, 2018. The GST Council in its 25th meeting recommended 12% GST on mechanical sprayers.

It is clarified that the S. No. 195B of the Schedule II to notification No. 1/2017- Central Tax (Rate), dated 28.06.2017 covers “mechanical sprayers” of all types whether or not hand operated (like hand operated sprayer, power operated sprayers, battery operated sprayers, foot sprayer, rocker etc.).

 

Clarification regarding taxability of imported stores by the Indian Navy:

  1. In respect of goods imported on temporary basis, aircrafts, aircraft engines and other      aircraft parts imported into India under a transaction covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Service Tax Act, 2017 are exempted from IGST vide S. No. 547A of notification No. 50/2017-Customs dated 30.06.2017, subject to condition No. 102.
  2. All goods, vessels, ships (other than motor vehicles) imported under lease, by the importer for use after import, were also exempted from IGST vide S. No. 557B of the said notification. Both these entries are subject to the same condition No. 102
  3. The intention of S. No. 557 A and 557 B is to exempt from IGST the imports of goods under an arrangement of supply of service covered by item 1(b) or 5(f) of Schedule II of the CGST Act, 2017 so as to avoid double taxation.

 

  1. It is hereby clarified that the expression “taken on lease/imported under lease” (in S. No. 557A and 557B respectively of notification No. 50/2017-Customs dated 30.06.2017) covers imports under an arrangement so as to supply services covered by item 1(b) or 5(f) of Schedule II of the CGST Act, 2017 to avoid double taxation.

 

 

Applicability of GST rate on parts for the manufacture solar water heater and system:

As per entry No 232, solar water heater and system attracts 5% GST

Solar Power based devices function on the energy derived from Sun (in form of electricity or heat).

solar water heater and system would also be covered under S. No 234 as solar power device

Solar Evacuated Tubes which falls under Chapter 84 and other parts falling under chapter 84, 85 and 94, used in manufacture of solar water heater and system would be eligible for 5% GST under S. No. 234.

 

Applicability of GST on the parts and accessories suitable for use solely or principally with a medical device:

As per chapter note 2(b), parts of ophthalmic equipment suitable for use solely or principally with an ophthalmic equipment should be classified with the ophthalmic equipment only and shall attract 12%.

It is clarified that 12% IGST would be applicable on the parts and accessories suitable for use solely or principally with a medical device falling under heading 9018, 9019, 9021 or 9022 in terms of chapter note 2 (b).