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

Circular No.: 179/11/2022-GST
Date of Circular: 3rd August 2022
Relevant Sections and Rules:

• Section 9, CGST Act – Levy of tax
• Section 11 & 6, CGST Act – Exemptions and classification
• Section 168(1), CGST Act – Power to issue instructions
• Notification No. 1/2017-CT(R) and 2/2017-CT(R) – GST rate notifications
• HSN Explanatory Notes – Used for classification guidance

Summary of Clarifications Issued:

1. Electric Vehicles without Batteries:
   Clarified that electrically operated vehicles, including e-rickshaws and e-bicycles, will attract 5% GST even if supplied without a fitted battery, as they are still classified under HSN 8703. Battery fitting is not essential to define such vehicles.
2. Napa Stones and Similar Stones (Not Mirror Polished):
   Stones like Napa stone, which are minor polished but not mirror polished, qualify for the 5% concessional GST rate under Sl. No. 123, Schedule I of Notification No. 1/2017-CT(R).
3. Mango Pulp and Dried Mangoes:

• Fresh mangoes: Exempt
• Sliced and dried mangoes: 5% GST
• Other dried forms including mango pulp: 12% GST
  Clarified via amendment in Sl. No. 16 of Schedule II.

4. Treated Sewage Water:
   Clarified to be exempt from GST under Heading 2201, as it is not “purified” water. The word “purified” was deleted from Notification 2/2017 to avoid misinterpretation.
5. Nicotine Polacrilex Gum:
   Classified under HS Code 2404 91 00 (NRT product) and attracts 18% GST as per Sl. No. 26B, Schedule III of Notification No. 1/2017-CT(R).
6. Fly Ash Bricks and Aggregates:
   Clarified that the 90% fly ash content condition applies only to fly ash aggregates, not to fly ash bricks or blocks. The condition was removed effective 18.07.2022.
7. By-products of Dal Milling (Chilka, Churi, Khanda):
   Classified under HSN 2302, these by-products attract 5% GST under Sl. No. 103A, Schedule I.
   For the past period, the matter will be regularized on an “as is” basis, considering multiple interpretations and genuine doubts.

This circular offers clarification on GST rates and classification of specific goods such as electric vehicles, stones, mango derivatives, sewage water, NRT gums, fly ash products, and dal milling by-products, aligning interpretations with HSN guidelines and GST Council decisions.

Source: Circular No.: 179/11/2022-GST