GST Rate of 28% is applicable on thereshed and redried tobacco

GST Rate of 28% is applicable on thereshed and redried tobacco : GST Rate of 14% is applicable when tobacco is thereshed and redried on job work basis. Ruling by Authority of Advance Ruling Andhra Pradesh in matter of Pragathi Enterprises

GST Rate of 28% is applicable on thereshed and redried tobacco

RULING

i. What is the rate of GST applicable on tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves Ruling: The GST Rate of tax for the tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves is 5%. ii. If the applicant purchases tobacco leaves form other dealers who have purchased them farmers, for the purpose of trading what will be the applicable rate of tax Ruling: 5% (2.5 % SGST + 2.5 % CGST) as per SI. No 109 of Schedule Notification No. 1/2017 (CGST) Central tax) Rate. Dt 28.6.2017 iii. If the applicant segregates the tobacco into grades depending upon their size (width), colour/shade, length, texture of the leaf etc and sells such graded tobacco leaf what is the applicable rate of tax Ruling: 5% (2.5 % SGST + 2.5 % CGST) as per SI. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 iv. If the tobacco leaves are butted and sold to other dealers what will be the applicable rate of tax Ruling: 5% (2.5 % SGST + 2.5 % CGST) as per SI. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 v. If the applicant gets the tobacco leaves redried without getting them threshed what is the applicable rate of tax Ruling: 5% (2.5 % SGST + 2.5 % CGST) as per SI. No 109 of Schedule I Notification No. 1/2017 (CGST) Central tax) Rate. Dt 28.6.2017 For the questions from S.No i to S.No vi...the relevant entry for rate of tax is:

Schedule	HSN	Product Description	Rate of GST
Schedule - I : SI No 109	2401	Tobacco Leaves	CGST 2.5% i.e. total GST % = 5%

  v . If the applicant gets the tobacco threshed and redried on job work basis at GLT plants and then sells such threshed and redried tobacco leaves what is the applicable rate of tax Ruling: 28% (14 % SGST + 14 % CGST) as per SI. No 13 of Schedule IV Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017

Schedule - IV: SI NO; 13

2401

Unmanufactured Tobacco; tobacco refuse (other than tobacco leaves)

CGST 14 % ie., total GST = 28%

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