Central Board of Indirect Taxes & Customs (CBIC) has issued Circular No. 113/32/2019-GST dated 11th October, 2019 to clarify GST rate classifications of certain goods such as almond milk, leguminous vegetables, goods imported under lease, parts of solar water heater, etc.

Key Points of the Circular are:

1. CBIC has clarified the classification of GST rates on dry leguminous vegetables in the following circumstances –

1. Leguminous vegetables which are subjected to mere heat treatment for removing moisture, or for softening and puffing or removing the skin, and not subjecting to any other processing or addition of any other ingredients such as salt and oil, would be classified under HS code 0713 and would be exempted from GST.
2. Leguminous vegetables as mentioned in point (a) above, if branded and packed in a unit container would attract GST at the rate of 5% .
3. However, if dried Leguminous vegetables classified under HS code 0713 is mixed with other ingredients (such as oil, salt etc) or sold as namkeens then the same would be classified under Sub heading 2106 90 as namkeens, bhujia, chabena and similar edible preparations and attract applicable GST i.e 5%.

1. CBIC has clarified that Almond milk is made by pulverizing almonds in a blender with water and is then strained. Hence, such almond milk neither constitutes any fruit pulp or fruit juice and it is not classifiable under tariff item 2202 99 20. Therefore, almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%.

1. CBIC has clarified that the expression “taken on lease/imported under lease” (in S. No. 557A i.e. rigs and ancillary items imported for oil or gas exploration and production taken on lease by the importer for use after import have also been exempted from IGST and 557B i.e. all goods, vessels, ships (other than motor vehicles) imported under lease, by the importer for use after import, were also exempted from IGST respectively of notification No. 50/2017-Customs dated 30.06.2017) covers imports under an arrangement of supply of  services covered by item 1(b) or 5(f) of Schedule II of the CGST Act, 2017 to avoid double taxation. The above clarification holds for such transactions in the past. Further, it has been clarified that wordings of S. No. 557A and 557B of Notification No. 50/2017-Customs dated 30.6.2017, have been aligned with Condition No. 102 of the Notification No. 34/2019-Customs dated 30.09.2019 w.e. f 01.10.2019 on the satisfaction of which the IGST has been exempted on such transaction.

1. CBIC has clarified that parts including Solar Evacuated Tube falling under chapter 84, 85 and 94 for the manufacture of solar water heater and system will attract 5% GST.

1. CBIC has clarified that 12% IGST would be applicable on the parts and accessories suitable for use solely or principally with a medical device falling under heading 9018, 9019, 9021 or 9022 in terms of chapter note 2 (b) of the Chapter 90.

Source: Central Board of Indirect Taxes & Customs (CBIC)

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