In Re: Sri. N.C. Varghese, Thrissur
GST
2018 (4) TMI 581 – AUTHORITY FOR ADVANCE RULING – KERALA – 2018 (12) G. S. T. L. 386 (A. A. R. – GST), [2018] 2 GSTL (AAR) 50 (AAR)
AUTHORITY FOR ADVANCE RULING – KERALA – AAR
Dated:- 26-3-2018
Application dated 23. 02. 2018 – CT/3270/18-C3
GST
Senthil Nathan S, IRS Member GST and N. Thulaseedharan Pillai Member SGST
ORDER
Sri. N.C. Varghese, Thrissur, a small scale contractor (hereinafter called the applicant), has preferred an application for Advance Ruling on the rate of tax of standing rubber trees. The applicant is engaged in the purchase and cutting and removal of rubber trees from the plantations of certain public sector undertakings owned by the Government of Kerala and
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e soft wood and cannot be used for construction purposes. It is generally used for the manufacture of packing cases and plywood substitutes, etc. after necessary processing.
4. The applicant further argued that in the VAT period, since rubber wood is not useful for construction purposes, the Government of Kerala exempted the rubber trees/rubber wood from the purview of tax in order to give relief to the growers.
5. The applicant, in his application dated 23-02-2018, has raised the following questions to be determined by the Authority for Advance Ruling.
“(1) Live rubber trees under HSN code 06 the rate of tax 0 but now insisting for payment of 18% GST which according to the auction there is no clarification issued by the GST
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es actionable claim, growing crops. grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of suppIy . In this case, under the contract of supply, growing crops – i.e., rubber trees are agreed to be severed before supply and hence, comes under the definition of 'goods'. Thus, standing rubber trees no longer remain as such. Therefore, it can only be treated as 'wood in rough form'.
8. In GST, firewood is exempted as per HSN Code 4401. There is no differentiation between soft wood and hardwood in GST.
9. In the light of the aforesaid circumstances, we rule as under.
RULING
It is hereby clarified that rate of tax on rubber wood in the aforesaid t
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