Clarification by Circular no. 163/19/2021-GST, dated 06.10.2021, on GST Rates and classification of Goods based on recommendation of GST council in press release dated 17.09.2021.
- It has been notified in Notification no. 3/2017-Central tax (Rate) that concessional rate of GST will be charged i.e. 5% for specified goods used in specified petroleum operations i.e. whenever specified petroleum goods supplied are transferred to other licensee or sub-contractor then Directorate General of Hydrocarbons (DGH) certificate is to be produced that whether the goods can be transferred to the transferee.
- As It has been given in Section 7, Schedule 1 of CGST Act, 2017 that inter-state stock transfer between distinct person (person having establishment in different states under same PAN) shall be considered as supply of goods
- The person will not be required to take the Essentiality certificate from DGH for every transfer of goods used in specified petroleum operation from one state to another state provided:
- he has taken essentiality certificate in the first transfer.
- the transfer should be within the same company/stock transfer
- the goods shall be same in all the cases
- the importer has maintained records
- the importer should be able to establish a nexus between the stock transfer of goods and the description in the essentiality certificate.
The link of Notificatin no. 3/2017-CT(R), dated 28.06.2017 is as under
