Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 6-7-2018 – Classification of goods or services Classification of Goods or Services is extremely critical activity under GST regime. The following should be taken care- The description of the product or the service; The nature of the transaction; HSN (Harmonized System Nomenclature) /SAC (Service Accounting Code); Taxability or as the case may be the exemption of the product or the service; Date of commencement of taxability with the relevant tax rate. It is mandatory to mention the HSN/SAC code of the product or the service on the tax invoice for all assesses having a turnover of ₹ 5 crores and above. Improper classification of goods or service would not only cause serious hardships to the accounting team but would also land the assessee in unwarranted and avoidable tax issues. In the central excise and service tax regime many a case has been disputed by the Assessing Officers and assessees in regard to the class
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edule. At the time of importation the same is being classified in Chapter 6810 for the purpose of levy of basic customs duty and IGST on the same. Considering the ambiguity in classification, the applicant has initiated an application for an advance ruling. The Authority found that the scope of Heading 2506 is limited only to quartz in crude state shape by sawing to form a slab. In the instant case addition of polymer resins and pigments in product has changed its structure from quartz. The said product is not quartz per se but is only one of raw material for its manufacturing. Accordingly its classification under 2506 is ruled out. The Authority observed that a similar product under import in USA was classified under Heading 6810 of Harmonized Tariff Schedule of the US. In view of the above, the Authority gave the ruling that Caesarstone slab is appropriately classifiable under Heading 6810 of Customs Tariff Act, 1975 and not under Heading 2506 for the purpose of levy of GST on local
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assified under SAC 9989 and taxable @ 12% under Sl. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017 as amended vide Notification No.31/2017-Central Tax (Rate), dated 13.10.2017. Polished/Processed limestone slab In Re Maheswari Stone Supplying Co. – 2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING-HYDERABAD, the applicant sought advance ruling on the following issues- In which Chapter the commodity called Polished/Processed limestone falls? Under which HSN Code the above commodity comes? Can it be classified as Mineral substance not elsewhere specified or included; which is mentioned under HSN Code 2530? Can it be classified under any of HSN Code 2515/2516/2521? Can it be retained under HSN Code 25 with inaugural phrase of Goods not mentioned elsewhere as mentioned at the start of column of 5%? The applicant submitted that his main activity to bring rough limestone to his unit and subjecting it to polishing with a table polish machine and then cutting it to sq
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ed – 2018 (6) TMI 427 – AUTHORITY FOR ADVANCE RULING,TELANGANA the issue to be decided in the present application by the Authority is on the classification and rate of tax on roof ventilation. The ventilation is powered by wind to give effect ventilation for industries, warehouses etc., The primary function is to provide ventilation by continuous extraction of air from building. Even in trade parlance, thee goods are identified as roof ventilation only and not wind mills as contended by the applicant. The Authority ruled that roof ventilation falls under Sl. No. 371B of Heading 8414 of Schedule III to Notification No. 01/2017-Central Tax (Rates) as amended and attracted at 9% CGST + 9% SGST. Tobacco leaves In Re. Shalesh Kumar Singh – 2018 (5) TMI 529 – AUTHORITY FOR ADVANCE RULING – DELHI the applicant claimed that the tobacco leaves are classifiable under Heading 2401 and taxable at 5% GST under serial number 109 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated 28.0
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not applicable, being in different context. The Authority held that the Dried Tobacco Leaves which have undergone the process of curing after harvesting of tobacco leaves are unmanufactured tobacco covered under HSN Code 2401. However, they are not covered under Sl. No. 109 of Schedule I of Notification No.1/2017-Central Tax (Rate), dated 28.06.207 @ 2.5% (CGST) + 2.5% (SGST) or 5% (IGST), but the same are covered under Sl. No. 13 of Schedule IV of the said notification as unmanufactured Tobacco (other than Tobacco Leaves) @ 14% (CGST) + 14% (SGST) or 28% (IGST). Carry bags In Re J.J. Fabrics – 2018 (6) TMI 560 – AUTHORITY FOR ADVANCE RULINGS, KERALA, the petition is the manufacturer of carry bags made of poly propylene non woven fabrics. The petitioner preferred an application before the Authority for the Advance ruling on the rate of tax of the said product. The applicant asserted that as per the clarification issued by the Commissioner of CGST and Central Excise, Madurai, the said n
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GST and SGST Notification. Joint replacements In Re. Gopal Gireesh – 2018 (6) TMI 705 – AUTHORITY FOR ADVANCE RULINGS, KERALA, the applicant in his application for advance ruling before the Authority submitted that the commodities dealt with by them are implant for handicapped patients in the nature of joint replacement fall under HSN Code 9021 31 00 and are included under Schedule I and the rate of GST is 5%. Sl. No. 257 – List 3E(G) – Implants for handicapped patients, Joint replacement etc., The Authority applied the principle under Rule 3 of the General Rules of interpretation of the First Schedule to the Customs Tariff Act, 1975; that the Heading which provides the most specific description shall be preferred to the Headings providing a more general description. The Authority held that the Joint replacements fall under HSN Code No. 9021 31 00 and covered under Sl. No. E(9) of List 3 under Sl. No. 257 in Schedule I to Notification No. 1/2017-Central Tax (Rate) attracting GST @ 5%.
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