Export of 'single super phosphate' (SSP) subject to 18% IGST for refunds.

The ruling in this case determines that when exporting 'single super phosphate' (SSP), the Applicant should pay IGST at 18% under Sl No. 43 of Schedule III of the relevant Notification if opting for a refund as per section 16(3)(b) of the IGST Act. The ruling clarifies that SSP exported for non-fertiliser use outside India falls under the 18% tax rate, while if used as a fertiliser, it is taxable at 5%. This decision remains valid unless declared void under the provisions of the GST Act.

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Issues:
1. Admissibility of the Application
2. Observations and findings of the Authority

Admissibility of the Application:
The Applicant, a manufacturer of chemical fertiliser, seeks a ruling on the applicable rate of IGST for exporting 'single super phosphate' (SSP). The question raised is deemed admissible under section 97(2)(b) of the GST Act. The Applicant confirms no pending issues under the GST Act, and the revenue officer has not objected to the application, leading to its admission.

Observations and findings of the Authority:
The Authority determines that IGST on SSP is 18% if not to be used as fertiliser, else taxable at 5%. Circular No. 54/28/2018-GST clarifies the concessional tax rate for fertilisers used directly or in complex fertilisers for agricultural purposes. Exported SSP qualifies as a zero-rated supply, allowing for a refund of input tax credit or payment of applicable IGST for refund. The applicable IGST rate considers consumption within India, with the ruling establishing that SSP exported for non-fertiliser use outside India falls under the 18% tax rate.

In conclusion, the ruling states that when exporting 'single super phosphate,' the Applicant should pay IGST at 18% under Sl No. 43 of Schedule III of the relevant Notification if opting for a refund as per section 16(3)(b) of the IGST Act. This ruling remains valid unless declared void under the provisions of the GST Act.

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