GST dated 22.11.2017 is issued to clarify classification and GST rate on Terracotta idols.

Circular No.: 20/20/2017-IGST
Date of Circular: 22nd November 2017
Relevant Sections and Rules:

• Integrated GST Act, 2017: General provisions relating to classification and tax rates on goods
• Relevant Notification:
  • Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 – Schedule I, S. No. 135A

Summary of Circular:

This circular provides clarification on the applicability of GST on terracotta idols, following queries regarding their classification and rate.

1. GST Rate on Clay Idols:
   • As per S. No. 135A of Notification No. 2/2017-CT (Rate), idols made of clay are exempt from GST (i.e., attract Nil rate).
2. Terracotta Idols Covered Under Exemption:
   • After examination, it is clarified that since terracotta is clay-based, terracotta idols also qualify under this exemption.
   • Hence, no GST is applicable on the supply of terracotta idols.
3. Clarification Scope:
   • This clarification ensures uniform treatment for all idols made of natural clay forms, including terracotta.

Source: Circular No.: 20/20/2017-IGST