In re Synthetic Moulders Limited (GST AAR West Bengal)
Classification and rate of tax on aerobic micro organism/protein derived thereof used in cementitious / concrete application
The product, viz. aerobic micro organism/protein derived thereof used as a biological agent to reduce the requirement of cement in all cementitious/concrete application as manufactured and to be supplied by the applicant falls under the description ‘Prepared additives for cements, mortars or concretes‘ and is classifiable under HSN 3824 40 of the First Schedule to the Customs Tariff Act, 1975.
The goods are covered under Sl. No. 97 of Schedule-III of Notification No. 1/2017-Central Tax (Rate) dated 28-6-2017 (as amended) and corresponding W.B.State Tax Notification No. 1125 F.T. dated 28.06.2017(as amended) attracting GST @ 18% (9% CGST +9% WBGST).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, WEST BENGAL
1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression „GST Act‟ would mean the CGST Act and the WBGST Act both.
1.2 The applicant is stated to be a manufacturer of aerobic micro organism/ protein derived thereof which, according to the applicant, reduces the requirement of cement in all cementitious / concrete application.
1.3 The applicant has made this application under sub-section (1) of section 97 of the GST Act and the rules made there under raising following question vide serial number 14 of the application in FORM GST ARA-01:
What shall be the HSN Code and rate of tax applicable on supply of aerobic micro organism/protein derived thereof used as a biological agent to reduce the requirement of cement in all cementitious / concrete application.
1.4 The aforesaid question on which the advance ruling is sought for is found to be covered under clause (a) of sub-section (2) of section 97 of the GST Act.
1.5 The applicant states that the question raised in the Application has neither been decided by nor is pending before any authority under any provision of the GST Act.
1.6 The officer concerned from the Revenue has raised no objection to the admission of the Application.
1.7 The Application is, therefore, admitted.
2. Submission of the applicant
2.1 The applicant submits that he has recently engaged in the business of manufacturing & supply of aerobic micro-organism/protein derived thereof. It has been claimed by the applicant that the goods so manufactured by him reduces the requirement of cement in all cementitious / concrete application.
2.2 Generation of such protein, as stated by the applicant, involves sequence of processes which may be summarised as follows:
