TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 729
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....cts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. 1. M/s. SRS Industries, located at 1/B4, Village Road, Balaji Nagar Extension, Puzhuthivakkam, Chennai - 600 091 (hereinafter called as 'the Applicant') is a proprietary concern and is registered under the, CGST Act, 2017 with GSTIN 33BGOPS7967M1ZA. The applicant is engaged in the manufacture of Fly Ash Bricks, Cement Bricks. 2. The Applicant has made a payment of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and TNGST Rules, 2017. 3. The applicant has filed the application seeking advance ruling on the following questions: 1. What is the correct Harmonised System of Nomenclature (HSN) Code for Fly ash br....
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....t wants a ruling to be issued clarifying classification and rate of GST on fly ash bricks. 3.3 On interpretation of law, the applicant stated that as per their view, the rate of tax on Fly Ash Bricks should be 5% as per the Hon'ble High Court's Order. 4. The applicant is under the administrative control of State Tax Authority. The concerned Authorities of the State and Centre were addressed to report the detailed remarks and no pendency report on the questions raised by the applicant in their ARA application. 4.1. Prima facie, we find that the queries raised by the applicant get covered under clause (a) and (e) of the Section 97(2) of the CGST Act, 2017, and as such are liable to be admitted. 4.2 Since, no remarks have been received from the Central and State GST jurisdictional Authorities, it is construed that there are no pending proceedings against the applicant on the questions raised by them in their advance ruling application PERSONAL HEARING 5.1 Mr. T. Sankar, Proprietor and Mr. S. Ramanathan, Consultant appeared for the personal hearing on 11.08.2025 as the authorized representatives (AR) of M/s. SRS Industries. The AR reiterated the submissions made in th....
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....is GST applicable to these bricks under this classification? 6.3 In GST regime, tax is levied on supply of goods or services or both as per Section 9(1) of the Central Goods and Services Tax ACT, 2017 (CGST Act, 2017). Section 9(1) of the CGST Act, 2017 is reproduced below for reference: (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. 6.4 The Government issued a Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 under Section 9(1) of the CGST Act, 2017, made effective from 1st of July 2017, notifying the rate of GST applicable to the goods listed in schedules to the said Notification, wherein Fly Ash Bricks is taxed vide S. No. 176B of Schedule II to the said Notification. Therefore, GST is applicable on Fly ash Br....
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....es made thereunder. 6.8 Therefore, from 01.04.2022 onwards, the applicant has the following options: 1. Pay tax at the overall rate of 12% GST (CGST 6% + SGST 6%), claiming the Input Tax Credit (ITC) on the inputs and input services, as eligible 2. Pay tax at the overall rate of 6% GST (CGST 3% + SGST 3%) without claiming ITC on the inputs and input services and reverse the proportionate ITC under Section 17(2) of the CGST Act, 2017. 6.9 During the personal hearing dated 11.08.2025, the AR informed us that they are availing ITC on the purchase of raw materials used in the manufacture of the fly ash bricks, viz. Fly ash, Cement, etc. Therefore, we are of the view that the applicant is not eligible for payment of GST at the concessional rate of 6% (CGST 3% + SGST 3%). Question No. 3: Are Fly ash bricks containing more than 51% fly ash eligible for any exemption or reduced GST rate due to the use of recycled or sustainable materials such as fly ash? 6.9 Section 2(47) of the CGST Act, 2017 defines exempted supply as: (47) "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from....
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....nor the activity of the applicant falls under the category notified under Section 9(4) of the Act, the Sections governing payment of tax under reverse charge mechanism. In fact, fly ash bricks figure in the list of goods notified vide Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 under Section 9(1) of the CGST Act, 2017, regulating liability on supplier of goods. Hence, the sale of fly ash bricks undertaken by the applicant is subject to GST under the normal taxation system and not under Reverse Charge Mechanism. Question No. 6: Are Fly ash bricks made with more than 51% fly ash eligible for any special GST exemption or reduced rate when sold to Government or Public Sector Undertakings (PSU) for public infrastructure projects? 6.14 As discussed in the preceding paras, list of goods which are exempted from payment of Tax are notified vide Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017, issued under Section 11(1) of the CGST Act, 2017 and as amended from time to time. The exemption provided on the supply of goods vide this Notification is irrespective of the fact whether the supplies are made to a government agency or a private entity. Therefore, fly....
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....tion No. Question raised by the Applicant Ruling of the Authority 1 What is the correct Harmonised System of Nomenclature (HSN) Code for Fly ash bricks made with more than 51% fly ash and how is GST applicable to these bricks under this classification? The HSN code for Fly ash bricks is 6815 99 10 and the supplier of fly ash bricks has to pay the tax liability as per S. No. 176B of Schedule II to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 2 What is the applicable GST rate for fly ash bricks containing more than 51% fly ash? Is there any difference in the rate as compared to bricks made with exactly 51% fly ash? The overall applicable rate of GST is 12% (CGST 6% + SGST 6%) with the availment of ITC. The applicant can pay 6% GST (CGST 3% + SGST 3%) concessional rate without availment of ITC, abiding by the conditions prescribed in Notification 2/2022-Central Tax (Rate) dated 31.03.2022, as amended. 3 Are Fly ash bricks containing more than 51% fly ash eligible for any exemption or reduced GST rate due to the use of recycled or sustainable materials such as fly ash? No, Fly ash bricks are not eligible for any exemption or reduced G....