The Gujarat Authority of Advance Ruling (AAR) ruled that Fly Ash Bricks and Fly Ash Blocks are liable to be taxed at the rate of 18% and 5% respectively.
The applicant M/s. Dipak Kumar Ramjibhai Patel (Shree Mahalaxmi Cement products), vide their application for Advance Ruling has submitted that they are a proprietorship concern, engaged in the manufacturing of Fly Ash Bricks and Fly Ash Blocks. They are manufacturing ‘Fly Ash Bricks’ and ‘Fly Ash Blocks’ by using the raw materials namely Cement; Fly Ash; Sand; Lime; and Water.
The applicant has further submitted that the products are manufactured from the mixer which is prepared by mixing the aforesaid raw materials in desired proportion and The HSN code of both the products is 68159910; that they are paying GST at the rate of 5% on ‘Fly Ash Bricks’ and 12% on ‘Fly Ash Blocks’ till notification No. 24/2018-Central Tax(Rate) dated December 31, 2018.
The applicant sought advance ruling on the issue of whether the supply of Fly Ash Bricks and Fly Ash Blocks are covered under Chapter heading 68159090 and liable to be taxed at the rate of 5% and 12% respectively under the GST Act.
The two-member bench of Sanjay Saxena and Mohit Agarwal ruled that applicability of GST rate on the Fly Ash Bricks would be 12% GST till November 14, 2017, and 18% GST with effect from November 15, 2017 as per Notification No. 01/2017-Central Tax(Rate) dated June 28, 2017 (as amended from time to time) issued under the CGST Act, 2017.
The AAR further ruled that applicability of GST rate on the Fly Ash Blocks would be 12% GST till December 31, 2018, and 5% GST with effect from January 1, 2019 as per Notification No:01/2017-Central Tax (Rate) dated June 28, 2017 (as amended from time to time) issued under the CGST Act, 2017.
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