Case Law Details
In re Gogineni Mohan Krishna (GST AAR Telangana)
GST @5% is being paid on supply of pulp wood in terms of Chapter 4401. Whether payment of GST at the said rate of tax is correct?
HSN Code 4401 is dealing in wood chips, saw dust, wood waste and scrap. It proposed to tax this items as such or when they are agglomerated or made into bounded forms such as logs, briquettes or pellets. As seen from the entry the word ‘logs…’ is predicated with the phrase ‘whether or not agglomerated in’. Thus only those logs agglomerated from wood chips or particles or saw dust or waste as scrap of wood will qualify to fall under this entry. This entry proposes not to tax logs as such but only such those logs which come into being upon agglomeration of wood chips, saw dust, wood waste, scrap etc. hence the debarked eucalyptus or subabul wood cut sizes do not fall under this entry.
The HSN Code 4403 covers “timber for sawing; poles for telephone, telegraph or electrical power transmission lines; unpointed and unsplit piles, pickets, stakes, poles and props; round pit-up-props; logs; whether or not quarter-split, for pulping; round logs for the manufacture of veneer sheets, etc; logs for manufacture of match sticks, wood ware, etc.”.
This HSN code clearly covers poles, props and logs for pulping. The applicant is supplying logs for pulping therefore the commodity dealt by him HSN code 4403 which is enumerated at Sl.No.134 of Schedule-III and hence taxable at the rate of 9% under CGST & SGST respectively.
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