TaxTMI 
TaxTMI 
Clarification regarding GST rates & classification (goods).
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....iii) Applicable GST rate on Mechanical Sprayer (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 exp....
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....ther "almond milk" would be classified as "Fruit Pulp or fruit juice-based drinks" and attract 12% GST under tariff item 22029920. 4.2. Almond Milk is made 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 22029920. 4.3. Almond milk is classified under the residual entry in the tariff item 22029990 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 II to Haryana Government, Excise and Taxation Department, notif....
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....ing taxability of imported stores by the Indian Navy: 6.1. Representation has been received from the Indian Navy seeking clarification on the taxability of imported stores for use of a ship of Indian Navy. 6.2. Briefly stated, in accordance with letter No.21/31/63-Cus-IV dated 17 August, 1966 of the then Department of Revenue and Insurance, the Indian Naval 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.....
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....:- The importer, by the execution of bond, in such form and for such sum as may be specified by the Commissioner of Customs, binds himself - (i) to pay integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item I(b) or 5 (f) of Schedule Il of the Central Goods and Services Act, 2017; (ii) not to sell or part with the goods, 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 1(b) or 5 (f) of Schedule II of the Central Goods and Services Act, 2017; (iv) to pay on demand an amount ....
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.... said notification [vide notification No. 34/2019-Customs dated 30.09.2019 w.e.f. 01.10.2019] to address the concerns raised. 8. Applicability of GST rate on parts for the manufacture of solar water heater and system: 8.1. Representations have been received seeking clarification on applicable GST rate on Solar Evacuated Tubes used in manufacture of solar heater. While 5% GST rate applies to parts used in manufacture of Solar Power based devices (serial number 234 of Haryana Government, Excise and Taxation Department, notification No. 35/ST-2, dated 30.06.2017 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. ....
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....by classifying it under heading 9018. However, objection has been raised by Comptroller and Auditor General of India (CAG) on the said practice, suggesting that since such goods were not specifically mentioned in the GST rate notification, they fall loader tariff item 9033 00 00 [residual entry] and should be assessed at 18% GST. In this background, representations have been received from trade and industry, seeking clarification in this matter 9.3. The matter has been examined. As per chapter note 2(b) of 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....