GST applicability on sale of Malt spirit

[KARAN VERMA]

Sir

Whether GST applicable on sale of Malt spirit. If yes what is GST rate and HSN code.

[DR.MARIAPPAN GOVINDARAJAN]

In my view HSN code may be 2203 or 2207

[KARAN VERMA]

ok, what about applicability of GST ON MALT SPIRIT.

[Ganeshan Kalyani]

1) HSN: 2207 - Ethyl alcohol and other spirits, denatured, of any strength [[other than ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol)]] – GST @18%

2) HSN 2207: Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol) – GST @ 5%

[KASTURI SETHI]

As per judgement of Bombay High Court in the case of UNITED SPIRITS LTD. Versus COMMR. OF CUS. (IMPORT), MUMBAI reported as 2009 (240) E.L.T. 513 (Bom.) = 2009 (6) TMI 23 - BOMBAY HIGH COURT, (there are other case laws also), Malt Spirit is un-denatured ethyl alcohal which is essence. It is concentrate. On this basis, it is classifiable under Chapter/Heading No.2207. Sub-heading wise break-up is given below

2207 UNDENATURED ETHYL ALCOHOL OF AN ALCOHOLIC STRENGTH BY VOLUME OF 80% VOL. OR HIGHER; ETHYL ALCOHOL AND OTHER SPIRITS, DENATURED , OF ANY STRENGTH

220710-Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher:

---Rectified spirit :

22071011---Concentrates of alcoholic beverages/150%-

22071019---Other/150%-

22071090---Other/150%-

22072000-Ethyl alcohol and other spirits, denatured, of any strength.

As per R.K.Jain' GST Tariff, Chapter/Heading/Sub-heading nos. 2207 10. 11, 2207 1019, 2207 1090 are Non-GST products. Therefore, correct classification can be ascertained on the basis of composition of Malt Spirit being manufactured/supplied by the assessee.

Pl. note that Malt Spirit is undenatured ethyl alcohol. Hope this will help you to arrive at correct and concrete decision.

[KARAN VERMA]

Thank you Sir, in our case Malt spirit having alcoholic strength about 60% which is going to be used for Whisky production.

AI Summary

GST applicability on malt spirit depends on HSN 2207 classification and on product composition, denaturation, and use. GST applicability on malt spirit depends on tariff classification, principally HSN 2207, and on the product's composition, alcoholic strength, denaturation status, and intended use. Certain subheadings within 2207 are noted in tariff commentary as non-GST products; therefore correct GST treatment and rate must be determined by analysing the malt spirit's composition and the precise HSN/subheading applicable to the supply.