GST – States – 11/2018 – Dated:- 13-8-2018 – GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 TRADE CIRCULAR No. 11/2018 DATED: 13.08.2018 Subject: Clarification regarding applicability of GST on various goods and services Representations have been received seeking clarification in respect of applicable GST rates on the following items: (i) Fortified Toned Milk (ii) Refined beet and cane sugar (iii) Tamarind Kernel Powder (Modified & Un Modified form) (iv) Drinking water (v) Plasma products (vi) Wipes using spun lace non-woven fabric (vii) Real Zari Kasab (Thread) (viii) Marine Engine (ix) Quilt and comforter (x) Bus body building as supply of motor vehicle or job work (xi) Disc Brake Pad 2. The matter has been examined. The issue-wise clarifications are discussed below: 3.1 Applicability of GST on Fortified Toned Milk: Representations have been received seeking clarification regarding applicability of GST on Fortified Toned Milk. For e
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rate has been prescribed on all kinds of beet and cane sugar falling under heading 1701. 4.2 Doubts seem to have arisen in view of S. No. 32 A of the Schedule II of notification No. 1125-F.T. dated 28.06.2017, which prescribes 12% GST rate on All goods, falling under tariff items 1701 91 and 1701 99 including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those which attract 5% or Nil GST) . 4.3 It is clarified that by virtue of specific exclusion in S.No. 32 A, any sugar that falls under 5% category [at the said S.No. 91 of schedule I of notification No.1125-F.T. dated 28.06.2017] gets excluded from the S.No. 32 A of Schedule II. As all kinds of beet and cane sugar falling under heading 1701 are covered by the said entry 91 in Schedule I, these would get excluded from S. No. 32 A of Schedule II, and thus would attract GST @ 5%. 4.4 Accordingly, it is clarified that beet and cane sugar, including refined beet and cane sugar, will fall under head
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act 5% GST in terms of the said notification. 6.1 Applicability of GST on supply of safe drinking water for public purpose: Representations have been received seeking clarification regarding applicability of GST on supply of safe drinking water for public purpose. 6.2 Attention is drawn to the entry at S.No. 99 of notification No. 1126-F.T. dated 28.06.2017, by virtue of which water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] falling under HS code 2201 attracts NIL rate of GST. 6.3 Accordingly, supply of water, other than those excluded from S.No. 99 of notification No. 1126-F.T. dated 28.06.2017, would attract GST at NIL rate. Therefore it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. 7.1 GST rate on Human Blood Plasma: References have been received about the varying practices being followed in different parts of the co
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6), whereas plasma products would attract 12% GST rate, if otherwise not specifically covered under the said List. 8.1 Appropriate classification of baby wipes, facial tissues and other similar products : Varied practices are being followed regarding the classification of baby wipes, facial tissues and other similar products, and references have been received requesting for the correct classification of these products. As per the references, these products are currently being classified under different HS codes namely, 3307, 3401 and 5603 by the industry. 8.2 Commercially, wipes are categorized into various types such as baby wipes, facial wipes, disinfectant wipes, make-up remover wipes etc. These products are generally made by using non-woven fabrics of viscose and poly viscous blend and are sprinkled with demineralized water and various chemicals and fragrances, which impart the essential character to the product. The base raw materials are moisturising and cleansing agents, preserv
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tances or preparations such as perfumes or cosmetics, soaps or detergents, polishes, creams or similar preparations. The HSN is reproduced as follows: The heading also excludes: Nonwoven, impregnated, coated or covered with substances or preparations [i.e. perfumes or cosmetics (Chapter 33), soaps or detergents (heading 3401), polishes, creams, or similar preparations (heading 3405), fabric, softeners (heading 3809)] where the textile material is present merely as a carrying medium. Further, HS code 3307 covers wadding, felt and non-woven, impregnated, coated or covered with perfumes or cosmetics. The HS code 3401, would cover paper, wadding, felt and non-woven impregnated, coated or covered with soap or detergent whether or not perfumed . 8.5 Further the explanatory notes to the HSN, the heading 3307 includes wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics. Similarly, as per explanatory notes to the HSN, the heading 3401 includes wipes made of pape
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f the Schedule-I-5% of the above-mentioned notification. 9.2 The heading 5809 and 5810 cover embroidery and zari articles. These heading do not cover yarn of any kinds. Hence, while these headings apply to embroidery articles, embroidery in piece, in strips, or in motifs, they do not apply to yarn, including Kasab yarn. 9.3 Further all types of metallised yarns or threads are classifiable under tariff heading 5605. Kasab (yarn) falls under this heading. Under heading 5605, real zari manufactured with silver wire gimped (vitai) on core yarn namely pure silk and cotton and finally gilted with gold would attract 5% GST under tariff item 5605 00 10, as specified at entry no. 218A of Schedule-I-5% of the GST rate schedule. Other goods falling under this heading attract 12% GST. Accordingly, kasab (yarn) would attract 12% GST along with other metallised yarn, whether or not gimped, being textile yarn, combined with metal in the form of thread, strip or powder or covered with metal including
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sel (being a part of the fishing vessel), falling under tariff item 8408 10 93 attracts 5% GST. 11.1 Applicable GST rate on cotton quilts under tariff heading 9404-Scope of the term Cotton Quilt . 11.2 Cotton quilts falling under tariff heading 9404 attract a GST rate of 5% if the sale value of such cotton quilts does not exceed ₹ 1000 per piece [as per S. No. 257 A of Schedule I of the notification No. 1125-F.T. dated 28.06.2017]. However, such cotton quilts, with sale value exceeding ₹ 1000 per piece attract a GST rate of 12% (as per S. No. 224A of Schedule II of the said notification). Doubts have been raised as to what constitutes cotton quilt, i.e. whether a quilt filled with cotton with cover of cotton, or filled with cotton but cover made of some other material, or filled with material other than cotton. 11.3 The matter has been examined. The essential character of the cotton quilt is imparted by the filling material. Therefore, a quilt filled with cotton constitutes
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arges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. 13.1 Applicable GST rate on Disc Brake Pad: Representations have been received seeking clarification of disc brake pad for automobiles. It is stated that divergent practices of classifying these products, in Chapter 68 or heading 8708 are being followed. Chapter 68 attracts a GST rate of 18%, while heading 8708 attracts a GST rate o
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