TaxTMI 
TaxTMI 
Clarification regarding GST rates & classification (goods).
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.... (iv) Taxability of imported stores by the Indian Navy (v) Taxability of goods imported under lease. (vi) Applicable GST rate on parts for the manufacture solar water heater and system (vii) Applicable GST on parts and accessories suitable for use solely or principally with a medical device 2. The issue wise clarifications are discussed below: 3. Classification of leguminous vegetables when subject to mild heat treatment (parching): 3.1 Doubts have been raised whether mild heat treatment of leguminous vegetables (such as gram) would lead to change in classification. 3.2 Dried leguminous vegetables are classified under HS code 0713. As per the explanatory memorandum to the HS 2017, the heading 0713 cove....
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....ade by pulverizing almonds in a blender with water and is then strained. As such almond milk neither constitutes any fruit pulp or fruit juice. Therefore, it is not classifiable under tariff item 2202 99 20. 4.3 Almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%. 5. Applicable GST rate on Mechanical Sprayer: 5.1 Representations have been received seeking clarification on the scope and applicable GST rate on "mechanical sprayers" of entry No. 195B of the Schedule Il to notification No. 1 (FTX.56/2017/14 dated 29.06.2017). The entry No. 195B was inserted vide notification No.6/2018 (FTX.56/2017/Pt-111/76 dated 21.02.2018). 5.2 All goods of heading 8424 i.e. [Mechanical appl....
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.... ships were treated as "foreign going vessels" for the purposes of Customs Act, 1962, and the naval personnel serving on board these naval ships were entitled to duty-free supplies of imported stores even when the ships were in Indian harbour. However, in the GST era, no such circular has been issued regarding exemption from IGST on purchase of imported stores by Indian Naval ships. The doubt has arisen as there is a no specific exemption, while there is a specific exemption for the Coast Guard (vide Sl. No. 4 of notification No. 37/2017Customs dated 30.6.2017). Similar exemption has not been specifically provided for Navy. 6.3 Indian Naval ship stores are exempted from import duty in terms of section 90(1) of the Customs Act, 1962. Furt....
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....ods, without the prior permission of the Commissioner of Customs of the port of importation; (iii) to re-export the goods within three months of the expiry of the period for which they were supplied under a transaction covered by item I (b) or 5 (f) of Schedule II of the Assam Goods and Services Act, 2017; (iv) to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions. 7.3 Similarly, rigs and ancillary items imported for oil or gas exploration and production taken on lease by the importer for use after import have also been exempted from IGST vide Sl.No. 557A of the said notification. Subsequentl....
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.... GST rate applies to parts used in manufacture of Solar Power based devices (Sl. No. 234 of No. 1 (FTX.56/2017/14 dated 29.06.2017), doubts have been raised in respect of parts of Solar water heaters on the ground that Solar Based Devices are being considered only as devices which run on Solar Electricity. 8.2 As per entry No 232, solar water heater and system attracts 5% GST. Further, as per Sl. No. 234 of the No. 1 (FTX.56/2017/14 dated 29.06.2017), solar power-based devices and parts for their manufacture falling under chapter 84, 85 and 94 attract 5% concessional GST. Solar Power based devices function on the energy derived from Sun (in form of electricity or heat). Thus, solar water heater and system would also be covered under Sl. ....
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.... the Chapter 90, parts and accessories of the instruments used mainly and principally for the medical instrument of chapter 90 shall be classified with the machine only. Chapter note 2(b) (of Chapter 90) reads as below: - "2 (b): other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instruments or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind;" 9.4 Thus, as per chapter note 2(b), parts of ophthalmic equipment suitable for use solely or principally with an ophthalmic equipment should be ....