Clarification regarding GST rates & classification (goods)

Circular No.: 80/54/2018-GST
Date of Circular: 31st December 2018
Relevant Sections and Rules:

• CGST Act, 2017: Section 168(1)
• Notifications Referred:
  • Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017
  • Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017
  • Notification No. 6/2018-Central Tax (Rate) dated 25.01.2018

Summary of Circular:

This circular provides clarifications on GST rates and classification of various goods based on representations received. Each item is addressed individually:

1. Chhatua or Sattu:

• A flour mixture of pulses and cereals under HSN 1106.
• Unbranded – Nil GST (S. No. 78 of Notification 2/2017-CTR)
• Branded & packed – 5% GST (S. No. 59 of Notification 1/2017-CTR)

2. Fish Meal & Other Raw Materials for Animal Feed:

• Inputs like fish meal, meat-cum-bone meal fall under HSN 2301.
• Fish meal etc. – 5% GST (S. No. 103 of Notification 1/2017-CTR)
• Finished cattle/poultry feed – Nil GST (S. No. 102 of Notification 2/2017-CTR)

3. Animal Feed Supplements (from Drugs):

• HSN 2309 applies if the product is trade-known as animal feed supplement (specific use).
• HSN 2936 applies if item is of general use or not in final supplement form.
• Classification depends on use and form of product.

4. LPG Supplied for Domestic Use:

• LPG supplied by refiners (e.g., GAIL/ONGC) to OMCs for domestic use is eligible for 5% GST under S. No. 165A from 25.01.2018.

5. PP Woven Bags (Laminated with BOPP):

• Classified under HSN 3923 (plastic articles).
• GST rate: 18%
• Non-laminated woven bags are classified as per their base material.

6. Wood Logs for Pulping:

• Covered under HSN 4403, including logs for pulping.
• GST rate: 18%

7. Bagasse-Based Laminated Particle Board:

• Covered under S. No. 92 of Schedule II of Notification 1/2017-CTR.
• GST rate: 12%, whether plain or laminated.

8. Embroidered Fabric Sets for Lady Suits (Three Pieces):

• Remains fabric, even if embellished.
• Classifiable under chapters 50–55 or 60.
• GST rate: 5% (as per Circular No. 13/13/2017-CGST)

9. Waste to Energy Plants (WTEP):

• 5% GST applicable under S. No. 234 (only for goods under Chapters 84, 85, and 94).
• Supplier must self-assess and maintain purchase order proof for WTEP usage.

10. Turbo Charger for Railways:

• Classified under HSN 8414, not under railway parts.
• GST rate: 18% (irrespective of use by railways)

11. Inter-State Movement of Rigs/Tools/Equipment (Not on Wheels):

• Movement on own account for service provision (not involving supply or stock transfer)
• Not treated as supply, no GST applicable

Source: Circular No.: 80/54/2018-GST