In re M/s Polisetty Somasundaram (GST AAR Andhra Pradesh)
(a) What is the rate of GST applicable on tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves?
The GST Rate of tax for the tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves is 5% As per the notification 4/2017 Central Tax (Rate), under ‘Reverse charge’.
(b) What will be the applicable rate of tax if the applicant purchases tobacco leaves from other dealers who have purchased them from farmers, for the purpose of trading?
5% (2.5% SGST + 2.5%CGST) as per SI.No.109 of schedule I Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017.
(c) What will be the applicable rate of tax if the applicant segregates the tobacco into grades depending upon their size (width), colour /shade, length, texture of the leaf etc., and sells such graded tobacco leaf?
5% (2.5% SGST + 2.5%CGST) as per SI.No.109 of schedule I Notification No.1/2017 Central Tax (Rate) dated 28.06.2017.
(d) What will be the applicable rate of tax if the tobacco leaves are butted and sold to other dealers?
5% (2.5% SGST + 2.5%CGST) as per SI.No.109 of schedule I Notification No.1/2017 Central Tax (Rate) dated 28.06.2017.
(e) What is the applicable rate of tax if the applicant gets the tobacco leaves re-dried without getting them threshed?
5% (2.5% SGST + 2.5%CGST) as per SI.No.109 of schedule I Notification No.1/2017 Central Tax (Rate) dated 28.06.2017.
(f) What will be the applicable rate of tax if the applicant gets the tobacco leaves threshed and re-dried?
28% (14% SGST +14% CGST) as per SI.No. 13 of Schedule IV Notification No.1/2017 Central Tax (Rate) dated 28.06.2017.
(g) What will be the applicable rate of tax if the applicant gets the tobacco threshed and re-dried on job work basis at others’ premises and then sells such threshed and re-dried tobacco leaves to others?
28% (14% SGST +14% CGST) as per SI.No. 13 of Schedule IV Notification No.1/2017 Central Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
ORDER
(Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s Polisetty Somasundaram (hereinafter referred to as applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act.
3. Brief Facts of the case:
The applicant is registered under GST vide GSTIN:37AACFP7251J1ZO. The applicant deals in purchase and sale of tobacco of all varieties and forms. He also undertakes the operations of threshing and re-drying of tobacco leaves to make the agricultural produce marketable, mostly in overseas market.
After the introduction of GST, Tobacco is brought under the taxability from the stage of tobacco leaves. The applicable rates of unmanufactured tobacco are covered under two heads under the tariff which are as under vide Notification No. 1/2017-Central Tax (Rate) dt. 28.06.2017, both having the same HSN Code of 2401, as shown below:
