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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....ii. 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 issue-wise clarifications are discussed in detail below. 3. Applicability of GST on fresh and dried fruits and nuts: 3.1 Representations have been received seeking clarification regarding the distinction between fresh and dried fruits and nuts and applicable GS....

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....09 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 seeds falling under heading 1209, (i.e. including tamarind seeds), if not supplied as seed for sowing, would attract GST at the rate of 5%. 5. Clarification of definition of Copra: 5.1. Representations have been received seeking clarification regarding the definition of Copra and applicable GST rates. 5.2 As per Explanatory Notes to HS (2017 edition) to heading 1203, Copra is dried flesh of coconut generally used for the extraction of coconut oil. Coconut kernel turns into copra, when it separates from the shell skin, whil....

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....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 illaichi or cardamom (which falls under heading 0908). It is clarified that flavored and coated illaichi is a value added product and falls under sub-heading 2106. It accordingly attract GST at the rate of 18% (S. No. 23 of schedule III 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]). 8. Applicability of GST on Brewers' Spent Grain (BSG), Dried Distillers' Grains with Soluble CDDGS1 and other such residues: 8.1 Representations have been received seeking clarification regarding classification and applicable GST rates on Brewers' spent grain (BSG), Dried distillers' grains with soluble [DDGS] and other such residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the....

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....f the First schedule of the Custom Tariff Act, 1975 reads as follows: "(a) sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; (b) sterile laminaria and sterile laminaria tents; (c) sterile absorbable surgical or dental haemostatics sterile surgical or dental adhesion barriers, whether or not absorbable; (d) opacifying preparations for X-ray examinations and diagnostic reagents designed to be administered to the patient, being unmixed products put up in measured doses or products consisting of two or more ingredients which have been mixed together for such uses; (e) blood-grouping reagents; (f) dental cements and other dental fillings; bone reconstruction cements; (g) first-aid boxes and kits; (h) chemical contraceptive preparations based on hormones, on other products of heading 2937 or on spermicides; (i) gel preparations designed to be used in human or veterinary medicine as a lubricant for parts of the body for surgical operations or physical examinations or as a coupling agent between the body and medical instruments; and (j) waste pha....

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....sferred to other licensee or sub-contractor a certificate from Directorate General of Hydrocarbons (DGH) is to be produced that the goods may be transferred to the transferee". 11.2. As per Section 7 read with Schedule-I of the TNGST Act 2017, inter-state stock transfer between distinct persons (establishment of same person located in two different states) is considered as 'supply 'of goods. 11.3. Representations have been received seeking clarification whether the original/ import Essentiality certificate can be used for such inter-state stock transfers or a fresh Essentiality certificate would be required for each inter-state stock transfer as it is being treated as supply subject to IGST. 11.4 GST Council deliberated upon this issue and a decision was taken that the original/ import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) is sufficient and there is no need for taking a certificate every time on inter-state movement of goods within the same company / stock transfer so long as the goods are the same as those imported by the company at concessional rate. 11.5. The importer is required to maintain records and should be able ....

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....uation of supply was recommended by the Council considering that it adequately represented the value of goods and services involved in the supply. 13.3 The GST Council has now decided to clarify that GST on such specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, for the period of 1st July, 2017 to 31st December, 2018, in the same manner as has been prescribed for the period on or after 1st January, 2019, as per the explanation in the 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]. However, it is specified that, no refunds will be granted if GST already paid is more than the amount determined using this mechanism. 14. Applicability of GST rates on Fibre Drums, whethercorrugated or non-corrugated 14.1 Hitherto, corrugated boxes and cartons, falling under heading 4819 attracted GST at the rate of 12% (entry 122 of 12% rate schedule), while other cartons falling under this heading attracted GST at the rate of 18%. Disputes have arisen as regards applicable GST on fibre drums, which is partially corrugated (as to whether it is be treated as corrugated or o....