Key Highlights of Circular No. 163/19/2021-GST

02March

Key Highlights of Circular No. 163/19/2021-GST

<h2>1. GST on Fresh vs Dried Fruits and Nuts</h2>? Fresh nuts & fruits → Exempt from GST ? Dried nuts & fruits → 5% or 12% GST ? Key distinction:<ul><li>Fresh fruits/nuts = Supplied in their natural state (plucked, even if chilled).</li><li>Dried fruits/nuts = Intentionally dehydrated (via sun drying, evaporation, etc.), including partially rehydrated or moderately heat-treated products.</li></ul><hr><h2>2. GST on Tamarind Seeds</h2>? Before 01.10.2021: Exempt (HSN 1209 - seeds used for sowing). ? After 01.10.2021:<ul><li>Tamarind seeds for sowing → Exempt</li><li>Tamarind seeds for other uses → 5% GST</li></ul><hr><h2>3. GST on Copra (Dried Coconut Flesh)</h2>? Coconuts (fresh/dried) under HSN 0801 → Exempt from GST ? Copra (HSN 1203 - used for oil extraction) → 5% GST<hr><h2>4. GST on Henna Powder & Leaves</h2>? Pure Henna Powder & Leaves (without additives) → 5% GST (HSN 1404). ? Henna paste in cones (Mehndi cones) → 5% GST (HSN 1404 & 3305).<hr><h2>5. GST on Scented Supari & Flavored Cardamom (Illaichi)</h2>? Scented Sweet Supari (Betel Nut Products - HSN 2106 90 30) → 18% GST. ? Flavored/Coated Cardamom (distinct from raw illaichi - HSN 2106) → 18% GST.<hr><h2>6. GST on Brewers' Spent Grain (BSG) & Dried Distillers' Grains (DDGS)</h2>? Residues of starch/sugar manufacture & distillation byproducts (HSN 2303) → 5% GST. ? Includes:<ul><li>Brewers’ spent grain (BSG)</li><li>Dried distillers’ grains with soluble (DDGS)</li><li>Beet pulp, bagasse, and brewing/distilling dregs</li></ul><hr><h2>7. GST on Pharmaceutical Goods (HSN 3006)</h2>? All goods under HSN 3006 attract 12% GST, including:<ul><li>Sterile surgical sutures & adhesives</li><li>Surgical haemostatics & adhesion barriers</li><li>X-ray contrast agents & diagnostic reagents</li><li>Bone reconstruction cements & dental fillings</li><li>First-aid kits & ostomy appliances</li></ul><hr><h2>8. GST on Laboratory Reagents (HSN 3822)</h2>? All goods under HSN 3822 (Diagnostic & Laboratory Reagents) → 12% GST.<hr><h2>9. Stock Transfers for Petroleum Operations – Essentiality Certificates</h2>? Stock transfers within the same company (distinct GST registrations in different states) qualify as supply under GST. ? Clarification: Original/import Essentiality Certificate issued by the Directorate General of Hydrocarbons (DGH) is sufficient for multiple stock transfers (no need for a new certificate each time).<hr><h2>10. GST on UPS/Inverters with External Batteries</h2>? UPS/Inverter (HSN 8504) → 18% GST ? External batteries (HSN 8507, except lithium-ion batteries) → 28% GST? If sold together but separately priced, they are treated as separate items and taxed accordingly.<hr><h2>11. GST on Solar PV Power Projects (Renewable Energy)</h2>? For supplies before 01.01.2019, GST can be paid using the 70:30 valuation formula (70% goods, 30% services), similar to Notification No. 24/2018, dated 31.12.2018. ? No refunds if excess GST has already been paid.<hr><h2>12. GST on Fiber Drums (Corrugated & Non-Corrugated - HSN 4819)</h2>? Before 01.10.2021:<ul><li>Corrugated fiber drums → 12% GST</li><li>Non-corrugated fiber drums → 18% GST ? From 01.10.2021 onward: All fiber drums taxed at 18% GST. ? If 12% GST was paid before 01.10.2021, no additional tax demand will be made (but no refunds for 18% GST payments).</li></ul><hr><h2>13. Trade Notices & Implementation</h2>? CBIC directs tax authorities to issue trade notices ensuring businesses understand these clarifications. ? Any challenges in implementation should be reported to CBIC.<a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-163-18-2021-gst.pdf">Circular-No-163-18-2021-GST</a>

Key Highlights of Circular No. 163/19/2021-GST

Categories:

Share:

Related Post