HSN code and rate of tax

[Bharat Cholleti]

Dear sir,

Rate of tax and HSN code of Groundnut Husk

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 81 of Notification No. 02/2017-C.T. (Rate) dated 28.06.2017 as amended only "Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken, of seed quality" falling under heading Ni. 1202 is chargeable to 'Nil' rate of gst.

According to Sl. No. 65 of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended "Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken other than of seed quality" falling under heading No. 1202 is liable to CGST @2.5% and SGST @2.5% if the supply is intra-state or 5% IGST if the supply is inter-state. Since Groundnut husk emerges during the processing of groundnut it cannot be treated as an agricultural product and the same is classifiable under heading 1202 and liable to gst @2.5% or 5% as the case may be. In my opinion, since there is no entry for waste arising during processing of groundnut the same is classifiable under heading 1202.

[Bharat Cholleti]

Thank you sir

[KASTURI SETHI]

I am also of the same view as opined by Sh.Ranganathan, Sir. Groundnut is classifiable under Chapter/Heading/Sub-heading No.1202 4290

AI Summary

HSN classification: groundnut husk treated as groundnuts, therefore subject to GST rates for non seed groundnuts. Groundnut husk derived during processing is not an agricultural product and is classifiable under heading 1202 as groundnuts other than of seed quality, thus attracting the GST treatment and rates applicable to that category rather than the Nil rate reserved for seed quality groundnuts.