2018 (10) TMI 1049 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 311 (A. A. R. – GST) – Rate of GST – Coir Pith – What is applicable GST rate for Coir Pith? – Held that:- The products in question are coir pith in raw form which is either sold as loose form or supplied by the applicant in Blocks, Briquettes form without any addition of chemicals. It is different from coir fibre. Further, the coir pith supplied by the Applicant does not undergo composting process, which would alter its composition and cannot be called as coir pith compost. Hence coir pith in its raw form whether in loose powder or compressed into blocks form are taxable at 2.5% CGST as per Sl. No 215 of Schedule I of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017.
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Ruling:- Coir pith in its raw form whether in loose powder or compressed into blocks form without any
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and Service Tax Act. M/s. Jeena Exports at No. 11 A, Spencer Compound, Dindigul 624001, Tamilnadu (hereinafter referred as the Applicant) is engaged in Trading in Coir Fibre, Coir Pith and Curled Coir. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted the copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are registered under GST vide Registration No. 33AKYPP4117DIZ2. They have preferred an application seeking Advance Ruling on the following question: What is applicable GST rate for Coir Pith? 2.1 The Applicant has stated that Coir pith is a by-product of the coir fibre processing industry. In the husk, coconut fibre are seen tightly packed along with non -fibrous, fluffy and light weight corky material known as coir pith or coir dust, which constitutes 50-70% of the husk. In the process of extraction of coir fibre from husk, generally about
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same. The coir products are not taxable in earlier Central Excise Law or under VAT law. If coir pith is classified under the same chapter in GST, applicable rate is 0%. As there is no specific clarification on the same in the GST law, they want to know the taxability of the product under GST. 3.1 The Authorized Representative of the Applicant was heard in the matter. They stated that they purchase coconut husk and extract coir pith. They submitted write up of manufacturing process and undertook to submit invoices for procuring husk and invoices for selling coir pith within a week. They stated that they do not need another hearing. Subsequently they furnished the above details for perusal. 3.2 All documents submitted were examined. It is seen from the purchase voucher that the applicant procures coconut husk. The manufacturing process indicates that coconut husk is processed to separate the coir fibre and coir dust also called as pith. The coir fiber is compressed into bales. The coir
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old in loose dust form or compressed into bricks / blocks and sold. 4.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. On perusal of Chapter Heading 5305 of Customs Tariff, 53050010- Coir bristles fibre, coir mattress fibre, coir short fibre, coir bit fibre, decorticated coir fibre 53050040 – Coir pith, processed in value added form like briquette, coins, neo disc, grow bags, organic manure and in loose form for use in horticulture or agriculture. From the submissions of the Applicant, it is ev
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vide Notification No. 18/2018 dated 26th July 2018 Notification no. 02/2017-C.T.(Rate) dt. 26th July 2018, which gives the exemption list: Sl.No. Chapter Head Description 132. 5305 Coconut, coir fibre Notification No. 19/2018 dated 26th July 2018 amended Notification 2/2017-C.T.(Rate) as under: (vi) after S. No. 132 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 132A 53 Coir pith compost other than those put up in unit container and, – (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE I] ; From the above, it is clear that only coir fibre was covered under the exemption upto 25th July 2018. Thereafter coir pith compost other than those put up in unit container and
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