TaxTMI 
TaxTMI 
Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 47th meeting held on 28th – 29th June, 2022 at Chandigarh
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....at Chandigarh, clarifications, with reference to GST levy, related to the following are being issued through this circular: 2. Electric vehicles whether or not fitted with a battery pack, attract GST rate of 5%: Many doubts have arisen regarding the applicable rate of GST on electrically operated vehicle without any battery fitted to it. The explanation of 'Electrically operated vehicles' in entry 242A of Schedule I of notification No. 1/2017-State Tax (Rate) reads as: 'Electrically operated vehicles which run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E-bicycles. As is evident from the explanation above, electric....
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....bject to extensive mirror polishing. Currently, Sl. No. 123 of Schedule-1 prescribes GST rate of 5% for 'Ecaussine and other calcareous monumental or building stone; alabaster [other than marble and travertine], other than mirror polished stone which is ready to use.' However, being brittle in nature, stones like Napa Stone, even though ready for use, are not subject to extensive polishing. Therefore, such minor polished stones do not qualify as mirror polished stones. Therefore, it is clarified that Sl. No. 123 in schedule-1 to the notification No. 1/2017- State Tax (rate), dated 30.06.2017 covers minor polished stones. 4. Mangoes under CTH 0804 including mango and but other than fresh mangoes and sliced, dried mangoes, attra....
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....for the purpose of levy of GST. In general, Water, falling under heading 2201, with certain specified exclusions, is exempt from GST vide entry at S. No. 99 of notification No. 2/2017-State Tax (Rate), dated the 30th June, 2017. Accordingly, it is hereby clarified that supply of treated sewage water, falling under heading 2201, is exempt under GST. Further, to clarify the issue, the word 'purified' is being omitted from the above-mentioned entry vide notification No. 7/2022-State Tax (Rate), dated the 21" July, 2022. 6. Nicotine Polacrilex Gum attracts n GST rate of 18%: Many doubts have arisen regarding the classification and applicable GST rate on Nicotine Polacrilex gum. The WCO 2022 HS Codes has inter alia introdu....
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....ing the applicable rate on the fly ash bricks and fly ash aggregates. Hitherto, as per entry at S. No. 176B of the Schedule II the items of description "Fly ash bricks or fly ash aggregate with 90 per cent, or more fly ash content; Fly ash blocks" attracts a GST rate of 12%. Confusion has arisen about the applicability of 90 per cent. condition on fly ash aggregates and fly ash bricks. As per the recommendations of the GST Council in the 23rd Meeting, the condition of 90% or more fly ash content was applicable only for fly ash aggregate. 8. Therefore, it is clarified that the condition of 90 per cent, or more fly ash content applied only to Fly Ash Aggregates and not to fly ash bricks and fly ash blocks. Further, with effect from 18th....
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....centrates and additives, wheat bran and de-oiled cake] 5% S.No. 103B of Schedule-I of notification No. 1/2017-State Tax (Rate), dated 30th June, 2017 Rice bran (other than de-oiled rice bran) 5% The dispute in applicable GST rate revolves around the central argument as to whether the above-mentioned by-products are meant for direct consumption as cattle feed and therefore attract exemption under S. No. 102 of notification No. 2/2017-State Tax (Rate) dated 30th June, 2017 or are otherwise not meant for direct consumption and thus covered under S. No. 103A of notification No. 1/2017- State Tax (Rate) dated 30th June, 2017 attracting a GST rate of 5%. While milling of pulses/dal, a wide range of by-products such as chilka, kh....