Based on the recommendations of the GST Council in its 47th meeting held on the 28th and 29th June at Chandigarh, the CBIC has issued clarifications with reference to the GST levy on various goods.
5% GST on electrically operated vehicle
The CBIC has clarified that an electrically operated vehicle is to be classified under HSN 8703 irrespective of whether the battery is not fitted to the vehicle at the time of supply. The supply attracts 5% GST in terms of entry 242A of Schedule I of notification No. 1/2017-Central Tax (Rate).
5% GST on Ecaussine and other calcareous monumental or building stone
The representations were received seeking clarification regarding the applicable GST rates on building stones, in particular Napa Stones, which are ready to use and polished in ways other than mirror-polished.
Napa Stone is a variety of dimensional limestone, which is a brittle stone and cannot be subjected to extensive mirror polishing. Currently, S. No. 123 of Schedule-I prescribes a 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, though ready for use, are not subject to extensive polishing. Therefore, minor polished stones do not qualify as mirror polished stones.
Mango pulp attracts 12% GST.
The CBIC clarified that mangoes, fresh falling under heading 0804, are exempted from GST. The mangoes, sliced and dried, falling under code 0804, are chargeable at a concessional rate of 5% GST. All other forms of dried mango, including mango pulp, attract GST at the rate of 12%.
No GST on Treated sewage water
The Board has clarified that the 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 entry vide notification No. 7/2022-Central Tax (Rate), dated July 13, 2022.
18% GST on Nicotine Polacrilex gum.
The Nicotine Polacrilex gum, which is commonly applied orally and is intended to assist tobacco use cessation, is appropriately classifiable under tariff item 2404 91 00 with an applicable GST rate of 18%.
12% GST on Fly ash bricks and aggregate
The representation was received seeking clarification regarding the applicable rate on the fly ash bricks and fly ash aggregates.
As per entry S. No. 176B of 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" attract a GST rate of 12%. The confusion arose regarding the applicability of the 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 to fly ash aggregate.
The CBIC clarified that the condition of 90 percent 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 July 18, 2022, the condition is omitted from the description.
5% GST on cattle feed ingredient
The representations were received seeking clarification regarding the applicable GST rate on by-products of milling of dailies and pulses such as Chilka, Khanda, and Churi. The by-products of milling of pulses or dal such as Chilka, Khanda, and Churi are appropriately classifiable under heading 2302, which consists of goods having descriptions such as bran, sharps, and other residues, whether or not in the form of pellets, derived from the sifting, milling, or other working of cereals or of leguminous plants.
The dispute was whether the by-products are meant for direct consumption as cattle feed and therefore attract an exemption or are otherwise not meant for direct consumption and attract a 5% GST.
The CBIC clarified that the goods which are used as cattle feed ingredients are appropriately classifiable under heading 2302 and attract GST at the rate of 5%.