Finance Ministry Clarifies GST Rates and Classification of Certain Goods based on Recommendations of 50th GST Council [Read Circular]

As per recommendation of the GST Council, in view of the prevailing genuine interpretational issues regarding the applicability of GST rate on the Biomass briquettes, falling under any chapter, the issue for past period from 01.07.2017 up to and inclusive of 12.10.2017 is hereby regularized on “as is” basis.

Supply of raw cotton by agriculturist to cooperatives:

As per recommendation of the GST Council, it is hereby clarified that supply of raw cotton, including kala cotton, from agriculturists to cooperatives is a taxable supply and such supply of raw cotton by agriculturist to the cooperatives (being a registered person) attracts 5% GST on reverse charge basis under notification no. 43/2017-Central Tax (Rate) dated 14 th November, 2017.

In view of prevailing genuine doubts, the issue for the past periods prior to issue of this clarification is hereby regularized on “as is basis”.

GST rate on Imitation Zari thread or yarn known by any name in trade parlance:

As per the recommendation of the GST Council in its 50th meeting, GST on imitation zari thread or yarn known by any name in trade parlance has been reduced from 12% to 5%. Accordingly, the rate has been notified vide S. No. 218AA with effect from 27th July,2023.

In view of the confusion in the trade regarding the applicability of GST rate on these products, the issue for past period upto 27.7.2023 is hereby regularized on “as is” basis.

Plates, cups made from areca leaves:

As per the recommendation of the GST Council, issues relating to GST on plates and cups made from areca leaves are hereby regularized on “as is basis” for the period prior to 01.10.2019.

GST rate on goods falling under HSN 9021

As per recommendations of the GST council in its 50th Meeting, it is hereby clarified that the GST rate on all such goods falling under heading 9021 would attract a GST rate of 5% and in view of prevailing genuine doubts, the issue for the past periods is hereby regularized on “as is basis”.

However, it is clarified that no refunds will be granted in cases where GST has already been paid at a higher rate of 12%.

The circular also clarified that no refunds will be granted where GST has already been paid in any of the above cases.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates