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
inter-alia issued clarifications in regard to GST rates on the supply of goods and services.
Clarification in relation to GST rate on Goods
- Pure henna powder and paste, having no additives, attract 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%. - 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 GST rate of 28% and Cess of 12%. This is being prescribed specifically in the GST
rate schedule. - Tamarind seeds fall under heading 1209, and hitherto attracted nil rate irrespective of use.
However, henceforth they would attract 5% GST rate (w.e.f. 1.10.2021) for use other than
sowing. Seeds for sowing will continue at nil rate. - External batteries sold along with UPS Systems/ Inverter attract 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. - Distinction between fresh and dried fruits and nuts is being clarified for application of GST
rate of “nil” and 5%/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.
Clarification in relation to GST rate on services
- Coaching services to students provided by coaching institutions and NGOs under the
- central sector scheme of ‘Scholarships for students with Disabilities” is exempt from
GST - Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and
attract 5% GST [ without ITC]. - Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by
parlors would attract GST at the rate of 18%. - Overloading charges at toll plaza are exempt from GST being akin to toll.
- The renting of vehicle by State Transport Undertakings and Local Authorities is
covered by expression ‘giving on hire’ for the purposes of GST exemption - The services by way of grant of mineral exploration and mining rights attracted GST
rate of 18% w.e.f. 01.07.2017. - Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate
of 28% applies only to admission to such facilities that have casinos etc. - Alcoholic liquor for human consumption is not food and food products for the purpose of
the entry prescribing 5% GST rate on job work services in relation to food and food
products
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