Memorandum of GST Rate clarification on Goods: 45th GST Council Meeting
With a packed agenda, the 45th GST Council Meeting held in Lucknow on September 17th, 2021 for its first physical meeting in 20 months. A plethora of decisions and proposals were made.
GST Council has inter-alia made the following recommendations relating to GST Rate clarification on Goods :
1. Chapter 14 applies a 5% GST rate on pure henna powder and paste that do not contain any additives.
2. Brewers’ spent grain (BSG), Dried Distillers’ Grains with Soluble [DDGS], and other residues that come under HS code 2303 are subject to a 5% GST.
3. GST is charged at a rate of 12% on all laboratory reagents and other products falling under category 3822.
4. GST is charged at 18 percent on scented sweet supari and flavoured and coated illachi that fall under category 2106.
5. “Carbonated Fruit Beverages of Fruit Drink” and “Carbonated Beverages with Fruit Juice” attract 28% GST rate and 12% Cess. In the GST rate schedule, this is expressly stated.
6. Tamarind seeds are classified as heading 1209 and have previously received no tariff, regardless of their use. However, for purposes other than sowing, they will now be subject to a 5% GST rate (from 1.10.2021). Sowing seeds will be available at no cost.
7. External batteries sold with UPS Systems/ Inverters are subject to the GST rate that applies to batteries (28 percent for batteries other than lithium-ion batteries), whereas UPS/inverters are subject to 18 percent.
8. During the period from 1.7.2017 to 31.12.2018, GST on designated Renewable Energy Projects can be paid in the 70:30 ratio for goods and services, respectively, in the same manner as it has been stipulated for the period on or after 1st January 2019.
9. The supplies made at a 12 percent GST rate in the past have been regularised due to ambiguity in the appropriate GST rate on Fibre Drums. All paper and paper board containers, whether corrugated or non-corrugated, will henceforth be subject to a single 18 percent GST rate.
10. The services provided by cloud kitchens/central kitchens fall under the category of ‘restaurant service,’ and are subject to a 5% GST without an ITC.
11. Difference between fresh and dried fruits and nuts is being explained in order to apply GST rates of “nil” and 5%/12%, respectively.
12. It has been noted that all pharmaceutical commodities falling under category 3006 are subject to GST at a rate of 12% [ not 18% ].
13. On imports, an essentiality certificate granted by the Directorate General of Hydrocarbons would suffice; there would be no need to get a certificate each time interstate stock transfers.
To Read GST Council 45th Meeting Official Press Release Download PDF Given Below :