The Central Board of Excise and Customs (CBEC) has made clarification regarding the applicability of GST and availability of Input Tax Credit (ITC) in respect of certain services.
It was declared that GST rate on loading, unloading packing, storage or warehousing of agricultural produce is Nil. Tea is a processed product made through several processes such as drying, rolling, shaping, refining, oxidation, packing etc. are considered as agricultural produce hence it is eligible for exemption and the same is applicable in the case of coffee beans also. Whereas pulses obtained through the process of dehusking or splitting or both are not agricultural produces. However whole pulse grains such as whole gram, rajma etc. are covered in the definition of agricultural produce.
Credit of input tax charged on consumption of goods such as aircraft engines, parts & accessories are not allowed for supply of service of transport of passengers by air in economy class at GST rate of 5%.
The Board further specified that any insurance scheme which is the total amount of premium paid by the central government, state government or union territory for government employees are eligible for exemption.
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