Clarifications on GST Rates & Classification: Circular No. 163/19/2021-GST

2025-03-03 09:20:33 02March

02March

Clarifications on GST Rates & Classification: Circular No. 163/19/2021-GST

The Ministry of Finance, via Circular No. 163/19/2021-GST, dated 6th October 2021, provides essential clarifications regarding GST rates and classifications based on the recommendations from the 45th GST Council meeting held on 17th September 2021. Here's a summary of the key highlights:1. Fresh vs Dried Fruits and Nuts<ul><li>Fresh nuts such as almonds, walnuts, and pistachios, classified under headings 0801 and 0802, are exempt from GST.</li><li>Dried fruits and nuts attract a GST rate of 5% or 12%.</li></ul>2. Classification and GST on Tamarind Seeds<ul><li>Tamarind seeds, under heading 1209, used for purposes other than sowing, attract a GST rate of 5%.</li></ul>3. Definition and GST on Copra<ul><li>Copra, the dried flesh of coconut, is classified under heading 1203 and attracts a GST rate of 5%.</li></ul>4. GST on Pure Henna Powder and Leaves<ul><li>Pure henna powder and leaves, classified under tariff item 1404 90 90, attract a GST rate of 5%.</li></ul>5. Flavored and Coated Illaichi, Scented Sweet Supari<ul><li>Flavored and coated illaichi falls under sub-heading 2106 and attracts a GST rate of 18%.</li><li>Scented sweet supari is classified under tariff item 2106 90 30 and attracts a GST rate of 18%.</li></ul>6. GST on Brewers' Spent Grain and Related Residues<ul><li>Brewers' spent grain, dried distillers' grains with soluble, and other residues fall under heading 2303 and attract a GST rate of 5%.</li></ul>7. GST on Pharmaceutical Products<ul><li>All goods falling under heading 3006 attract a GST rate of 12%, as specified in entry 65 of Schedule II of the notification.</li></ul>8. Laboratory Reagents<ul><li>Laboratory reagents falling under heading 3822 attract a GST rate of 12%.</li></ul>9. Original/Import Essentiality Certificate<ul><li>The original/import essentiality certificate issued by the Directorate General of Hydrocarbons (DGH) is sufficient for inter-State stock transfers of goods imported at concessional GST rates for petroleum operations.</li></ul>10. External Batteries with UPS Systems/Inverters<ul><li>UPS systems/inverters attract a GST rate of 18% under heading 8504.</li><li>External batteries attract a GST rate of 28% (for all batteries except lithium-ion batteries) under heading 8507.</li></ul>11. Solar PV Power Projects<ul><li>For supplies made before 1st January 2019, the value of supply of goods is deemed as 70% of the gross consideration, and the remaining 30% is deemed as the value of services.</li></ul>12. Fibre Drums<ul><li>A uniform GST rate of 18% is applied to all goods classifiable under heading 4819, effective from 1st October 2021. Supplies made at 12% GST prior to this date are treated as fully GST-paid. <a href="https://cms.plasament.com/storage/circular-20no-20163-18-2021-gst.pdf">circular_20no._20163_18_2021_gst</a>  </li></ul>