Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021 at Lucknow

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....e following are being issued through this circular: i. Fresh vs dried fruits and nuts; ii. Classification and applicable GST rates on Tamarind seeds; iii. Coconut vs Copra; iv.  Classification and applicable GST rate on Pure henna powder and leaves, having no additives; v. Scented sweet supari and flavored and coated illaichi; vi. Classification of Brewers' Spent Grain (BSG), Dried Distillers' Grains with Soluble [DDGS] and other such residues and applicable GST rate; vii. GST rates on goods [miscellaneous pharmaceutical products] falling under heading 3006; viii. Applicability of GST rate of 12% on all laboratory reagents and other goods falling under heading 3822; ix.  Requirement of Original/ Import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) on each inter-State stock  transfer of goods imported at concessional GST rate for petroleum operations; x. External batteries sold along with UPS Systems/ Inverter; xi. Specified Renewable Energy Projects; xii. Fiber Drums, whether corrugated or non-corrugated. 2. The is....

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.... covers tamarind seeds. As per Chapter note 3 to Chapter 12, for the purposes of heading 1209, beet seeds, grass and other herbage seeds, seeds of ornamental flowers, vegetable seeds, seeds of forest trees, seeds of fruit trees, seeds of vetches (other than those of the species Vicia faba) or of lupines are to be regarded as "seeds of a kind used for sowing". Thus, tamarind seeds, even if used for any purpose other than sowing, is liable to be classified under heading 1209 and hitherto attracted nil GST rate, irrespective of its use (for the period 01.07.2017 to 30.09.2021). 4.3 The GST council in its 45th meeting recommended GST rate on seeds, falling under heading 1209, meant for any use other than sowing to 5% (SI. No. 71A of schedule I of G.O. (Ms) No. 62 dated 29.06.2017, TN Notfn No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]) and Nil  rate would  apply only to seeds for this heading if used for sowing purposes Notification in  SI. No. 86 of schedule of G.O. (Ms) No. 63 dated 29.06.2017,  TN   Notfn   No.II(2)/CTR/532(d-5)/2017,  dated 29.6.2017 [Issue No. 202). Hence, with effect from 1.10.2021, tamarind and other ....

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..... 62 dated 29.06.2017,  TN   Notfn   No.II(2)/CTR/532(d-4)/2017,   dated 29.6.2017 [Issue No. 202]. 6.4. Further, the GST rate on mehndi paste in cones falling under heading 1404 and 3305 shall be 5% (S. No. 78A of schedule I  of G.O. (Ms) No. 62 dated 29.06.2017, TN  Notfn  No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]) 7.  Applicability of GST on scented sweet supari & flavored and coated illaichi: 7.1  Representations have been received seeking clarification regarding classification and applicable GST rates on flavored and coated illaichi, and scented sweet supari. 7.2  Scented sweet supari falls under tariff item  2106 90 30 as "Betel nut product" known as "Supari" and attracts GST rate of 18% vide entry at S.  No. 23  of  Schedule  III  of  notification  in  G.O. (Ms)  No. 62  dated 29.06.2017 TN Notfn No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202]. 7.3  Flavored and coated illaichi generally consists of Cardamom Seeds, Aromatic Spices, Silver Leaf, Saffron, Artificial Sweeteners.   It is distinct from ....

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.... goods specified in Note 4 to this Chapter [i.e. Sterile  surgical  catgut,  similar sterile  suture  materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental   adhesion barriers, whether   or   not   absorbable; Waste pharmaceuticals] [other than contraceptives]" 9.2 S. No. 65 of Second Schedule of G.O. (Ms) No. 62 dated 29.06.2017 TN Notification No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202] refers to the note 4 to Chapter 30 of the First schedule of the Customs Tariff Act, 1975 while mentioning an illustrative list. Certain representations were received seeking clarification on the applicable rate of goods falling under heading 3006 that are not specifically mentioned in the Entry at S. No. 65 of Schedule II of G.O. (Ms) No. 62 dated 29.06.2017 TN Notification No.II(2)/CTR/532(d-4)/2017, dated 29.6.2017 [Issue No. 202] 9.3  Note 4 to Chapter 30 of the First schedule of the Custom Tariff Act, 1975 reads....

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....her the  benefit of concessional rate of 12% would be available to laboratory agents and other goods falling under heading  3822. 10.3 Heading 3822 covers "Diagnostic or Laboratory Reagents, Certified Reference Materials etc." 10.4  The  issue  was  placed  before  the  GST  Council  and  on  its recommendations, it is clarified that the intention of this entry was to prescribe GST rate of 12% to all goods, whether diagnostic or laboratory regents, falling under heading 3822. 10.5  It is accordingly clarified that concessional GST rate of  12% is applicable on all goods falling under heading 3822, vide Entry at S. No. 80 of Schedule II of notification No.1/2017-Integrated Tax (Rate) dated 28.6.2017. 11.  Requirement of Original/ import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) on each inter-State stock transfer of goods imported at concessional GST rate for petroleum operations 11.1 Notification issued in G.O. (Ms) No. 64 dated 29.06.2017, TN Notfn No.II(2)/CTR/532(d-6)/2017, dated 29.6.2017 [Issue No. 202] prescribes concessional rate of  5% f....

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....   identifiable   items   on   one invoice.  Therefore, it is clarified that in such supplies, UPS/ inverter would attract GST rate of 18% under heading 8504, while external batteries would attract the GST rate as applicable to it under heading 8507 (28% for all batteries except lithium-ion battery). 13. Applicability of GST rates on Solar PV Power Projects 13.1  Representations have been received seeking clarification regarding the  GST rates applicable on  Solar PV Power Projects on or before 1st January, 2019. The issue seems to have arisen in the context of Notification issued  in  G.O. (Ms)  No.167,  dated 31.12.2018  TN  Notification  No.II (2)/CTR/1099(e-12) /2018,   dated 31-12-2018 [Issue   No.425].   An explanation was inserted vide the said notification that GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, with effect from 1st January, 2019. The request has been that same ratio (for deemed value) may be applied in respect of supplies made before 1.1.2019. 13.2  As....