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13 August 2018

GST rate on various products and services clarified

CBIC has issued an elaborate circular to clarify on rate of GST on various products, namely, fortified toned milk, refined beet and cane sugar, tamarind kernel powder (modified & un-modified form), drinking water, plasma products, wipes using spun lace non-woven fabric, real zari kasab (thread), marine engine, quilt and comforter, and disc brake pad.

According to Circular No. 52/26/2018-GST, dated 9-8-2018, fortified toned milk and drinking water for public purposes (if not supplied in a sealed container) would not be liable to GST, same would be payable @ 5% on refined beet and cane sugar, and tamarind kernel powder (both plain and treated).

The circular also states that a quilt filled with cotton constitutes a cotton quilt, irrespective of the material of the cover of the quilt, and that Disc Brake pad for automobiles, are appropriately classifiable under heading 8708 of the Customs Tariff Act, 1975 thus attracting 28% GST.

Further, it has also been clarified that fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and GST would be payable at 18%.