Central Board of Indirect Taxes & Customs (‘CBIC’), in response to representation seeking clarification on GST of certain goods, issued a circular dated 11th October 2019, with the classification of a list of goods and their respective GST rates.
Summary of Clarifications given under the circular:
- Classification of leguminous vegetables when subject to mild heat treatment (parching)
CBIC has clarified that such leguminous vegetables (eg: peas, chickpeas etc) 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 attract GST at the rate of 5% if branded and packed in a unit container In all other cases such goods would be exempted from GST. 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 and attract applicable GST rate.
- Classification and applicable GST rate on Almond Milk
CBIC has clarified that Almond milk is made by pulverizing almonds in a blender with water and is then strained. Hence, such almond milk neither constitutes any fruit pulp or fruit juice. Therefore, 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:
Mechanical sprayers attracted 18% of GST till January 2018. CBIC, has now clarified through the Notification dated 28th June 2017, that S No. 195B of the Schedule II 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). Therefore, it attracts 12% of GST.
- Clarification regarding taxability of imported stores by the Indian Navy:
CBIC has clarified that imported stores for use in navy ships are entitled to exemption from GST
- Clarification regarding taxability of goods imported under lease:
CBIC has clarified that the expression “taken on lease/imported under lease” (Mentioned in an earlier notification dated 30th June 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. The above clarification holds for such transactions in the past.
- Applicability of GST rate on parts for the manufacture solar water heater and system
CBIC has clarified that parts including Solar Evacuated Tube falling under chapter 84, 85 and 94 for the manufacture of solar water heater and system will attract 5% concessional GST.
- CBIC has clarified that 12% IGST would be applicable on the parts and accessories suitable for use solely or principally with a medical device.
Click here to read the Circular
