Pure Henna Powder, Laboratory Reagents, Carbonated Fruit Beverages of Fruit Drink: GST Council issues Clarification on GST Rate

Pure Henna Powder - Laboratory Reagents - Carbonated Fruit Beverages of Fruit Drink - GST Council - Taxscan

The GST Council’s 45th meeting was held today in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has issued various clarifications in relation to the GST rate on Goods.

As per the clarifications by the GST Council pure henna powder and paste, having no additives, attract a 5% GST rate under Chapter 14. Brewers’ Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS], and other such residues, falling under HS code 2303 attract GST at the rate of 5%.

Further, all laboratory reagents and other goods falling under heading 3822 attract GST at the rate of 12%. Scented sweet supari and flavored and coated illachi falling under heading 2106 attract GST at the rate of 18%. Carbonated Fruit Beverages of Fruit Drink” and “Carbonated Beverages with Fruit Juice” attract a GST rate of 28% and Cess of 12%. This is being prescribed specifically in the GST rate schedule.

It has been further clarified that tamarind seeds fall under heading 1209, and hitherto attracted nil rate irrespective of use. However, henceforth they would attract a 5% GST rate (w.e.f. 1.10.2021) for use other than sowing. Seeds for sowing will continue at a nil rate.

Moreover, external batteries sold along with UPS Systems/ Inverter attract a GST rate applicable to batteries [28% for batteries other than lithium-ion battery] while UPS/inverter would attract 18%.

GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for
goods and services, respectively, during the period from 1.7.2017 to 31.12.2018, in the
same manner as has been prescribed for the period on or after 1st January 2019.

Due to ambiguity in the applicable rate of GST on Fibre Drums, the supplies made at 12% GST in the past have been regularised. Henceforth, a uniform GST rate of 18% would apply to all paper and paper board containers, whether corrugated or non-corrugated.

The distinction between fresh and dried fruits and nuts is being clarified for application of GST rate of “nil” and 5% or 12% respectively; It is being clarified that all pharmaceutical goods falling under heading 3006 attract GST at the rate of 12% [ not 18%]. Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.

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