Case Law Details
In re Shree Rajarajeshwari and Company (GST AAR Karnataka)
What is the Classification of Pulpwood supplied to paper mills and the rate of tax (GST) thereon?
In this regard a Circular was issued by the Government of India bearing Circular number 80/54/2018-GST dated 31-12-2018 stating that representation had been received seeking clarification on applicability of GST rate on wood log for pulping. Wood in the rough (whether or not stripped of bark or sapwood, or roughly squared) is classified under heading 4403 and attracts 18% GST.
“timber for sawing; poles for telephone, telegraph or electrical power transmission lines; un pointed and un split piles, pickets, stakes, poles and props; round pit-props; logs, whether or not quarter-split, for pulping; round logs for the manufacture of veneer sheets, etc.; logs for the manufacture of match sticks, wood ware, etc.”.
Thus, it is clarified that wood logs or any kind of wood in the rough/timber, including the wood in rough/log/timber used for pulping falls under heading 4403 and attract GST at the rate of 18%.
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