Wood Waste Exemption from GST Tariff Act

The ruling determined that Eucalyptus/Poplar Wood Waste in Logs, meeting specified dimensions, does not fall under HSN 4401 of the GST Tariff Act. Therefore, it is not subject to GST at 5% (CGST at 2.5% and SGST at 2.5%). The classification criteria did not align with the applicant's query, resulting in a negative ruling on the issue. The ruling emphasized the significance of precise questioning for advance rulings and the utilization of classification guidelines from the Customs and GST Tariff manuals.

---

---

Issues:
1. Application seeking advance ruling on the classification and tax liability of Eucalyptus/Poplar Wood Waste in Logs under HSN 4401.

Analysis:
The application was filed by M/s. Sharda Timber seeking a ruling on whether Eucalyptus/Poplar Wood Waste in Logs falls under HSN 4401 and is chargeable to tax under Uttarakhand State GST and CGST at 2.5%. The authority admitted the application as it pertained to the classification of goods and determination of tax liability, falling under Section 97(2)(a) & (e) of the CGST/SGST Act, 2017.

The applicant was granted a personal hearing where relevant details were presented. The ruling was sought on the classification and tax liability of Eucalyptus/Poplar Wood Waste in Logs under HSN 4401. To address this, the authority referred to the GST Tariff and Customs Tariff manuals for classification guidelines.

The Customs Tariff manual was consulted to determine the classification of Eucalyptus/Poplar Wood Waste in Logs under HSN 4401. The description of goods under HSN 4401 did not mention specific criteria like length and girth of wood waste in logs. It was noted that wood in the rough, falling under HSN 4403, attracts a higher GST rate of 18%.

The ruling concluded that Eucalyptus/Poplar Wood Waste in logs, with specified dimensions, does not fall under HSN 4401 of the GST Tariff Act. Therefore, it is not chargeable to GST at 5% (CGST at 2.5% and SGST at 2.5%). The classification criteria did not align with the applicant's query, leading to a negative ruling on the issue.

In summary, the ruling clarified the classification and tax liability of Eucalyptus/Poplar Wood Waste in Logs under HSN 4401, highlighting the importance of accurate framing of questions for advance rulings and the relevance of classification guidelines from the Customs and GST Tariff manuals.

---