In re Isotex Corporation Private Limited (GST AAR Gujarat)
Question: What is the classification and rate of tax payable in respect of Agro Waste Thermic Fluid Heater or Boiler and parts thereof considering the applicability of Sl. No. 234 of Schedule I to Notification No.1/2017-Central Tax (Rate), dated 28.06.2017 and corresponding notifications issued under State GST law and IGST Act?
Answer: The Agro Waste Thermic Fluid Heaters or Boilers are classifiable under heading 8402 19 19 of the First Schedule to the Customs Tariff Act, 1975 and attract 9% CGST + 9% SGST in terms of Sr. No. 310 of Schedule III of Notification No. 1/2017-Central Tax (Rate) & the corresponding Notification issued under GGST Act, 2017 OR 18% IGST in terms of Sr. No. 310 of Schedule III of Notification No.1/2017- Integrated Tax (Rate), as applicable.
Read AAAR Ruling : 18% GST applies on Biomass Fired (Steam) Boilers & Agro Waste Thermic Fluid Heater
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, (Gujarat)
BRIEF FACTS
The applicant, is engaged in the manufacture of “Waste to Energy Plants/Devices” viz. Agro Waste Thermic Fluid Heater, which falls under Tariff Item 8402 19 90 as Tariff Item 8402 covers within its ambit Steam or other Vapour Generating Boilers. The goods are manufactured and supplied from applicant’s Unit I located at 178/1/C, 181/2/3, GIDC, Naroda, Ahmedabad-382330 and/or Unit II located at D/2/E-76, GIDC Industrial Estate, Ta.: Vagra, Dahej, Bharuch.
2. Such Agro Waste Thermic Fluid Heater is renewable energy device & parts thereof as it generates energy from waste namely, biomass. Such heaters or boilers are high efficiency Biomass Fired Boilers that uses waste material for generation of energy.
3. According to Sl. No.234 of Schedule I to Notification No.1/2017-CT (Rate) dated 28.06.2017, the Central Tax Rate of 2.5% is payable on renewable energy devices and parts for their manufacture as specified therein and falling under Chapter 84 or 85. The relevant extract from the said Notification is given below for ready reference:
SCHEDULE I-2.5%
