GST Clarifications on Goods – Key Highlights from CBIC Circular No. 179/11/2022

2025-03-03 06:32:04 02March

02March

GST Clarifications on Goods – Key Highlights from CBIC Circular No. 179/11/2022

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 179/11/2022-GST to provide clarifications on GST rates and classification of certain goods. These clarifications are based on the recommendations made in the 47th GST Council Meeting held on 28th-29th June 2022 in Chandigarh.This blog summarizes the key takeaways from the circular.<hr><h2>1. GST on Electric Vehicles – With or Without Battery</h2><ul><li>Clarification: Electric vehicles (EVs) without a battery will still attract 5% GST.</li><li>Reasoning: EVs are defined as vehicles that run solely on electrical energy, irrespective of whether a battery is installed at the time of supply.</li><li>HSN Classification: HSN 8703.</li><li>Impact: This ensures uniform tax treatment for EV manufacturers and sellers.</li></ul><hr><h2>2. GST on Napa Stones & Polished Stones</h2><ul><li>Clarification: Napa stones and similar building stones with minor polishing qualify for 5% GST under S. No. 123 of Schedule-I.</li><li>Key Point: These stones are not considered “mirror-polished”, making them eligible for a concessional tax rate.</li></ul><hr><h2>3. GST on Mangoes & Mango Pulp</h2><ul><li>Fresh Mangoes: Exempt from GST (S. No. 51 of Notification No. 2/2017).</li><li>Sliced & Dried Mangoes: 5% GST.</li><li>Mango Pulp & Other Dried Forms: 12% GST.</li><li>Clarification: Only sliced and dried mangoes qualify for the 5% GST rate, while all other dried mangoes, including mango pulp, will continue to attract 12% GST.</li></ul><hr><h2>4. Treated Sewage Water – No GST</h2><ul><li>Clarification: Treated sewage water is NOT considered purified water for GST purposes.</li><li>GST Rate: Exempt from GST under Heading 2201.</li><li>Impact: This benefits industries using treated sewage water in operations.</li></ul><hr><h2>5. GST on Nicotine Polacrilex Gum (NRT)</h2><ul><li>Clarification: Nicotine Polacrilex gum (used in Nicotine Replacement Therapy (NRT) to assist in quitting smoking) is classified under HSN 2404 91 00.</li><li>GST Rate: 18%.</li><li>Impact: Confirms that NRT products are taxable at a standard rate.</li></ul><hr><h2>6. GST on Fly Ash Bricks & Fly Ash Aggregate</h2><ul><li>Clarification: The 90% fly ash content requirement applies ONLY to fly ash aggregates, NOT fly ash bricks.</li><li>Impact: Ensures clarity in tax treatment for construction materials.</li><li>GST Rate: 12% for both fly ash bricks and aggregates.</li></ul><hr><h2>7. GST on By-products of Dal/Pulses Milling (Chilka, Khanda, Churi)</h2><ul><li>Classification: These by-products fall under HSN 2302.</li><li>GST Rate: 5% GST under S. No. 103A of Schedule-I.</li><li>Past Cases Regularized: Due to multiple interpretations, past cases will be treated “as is” without retrospective taxation.<a href="https://cms.plasament.com/storage/cir-179-08-2022-cgst-1-1.pdf">cir-179-08-2022-cgst (1)-1</a>  </li></ul>