In re Deccan Tobacco Company (GST AAR Andhra Pradesh)
Question (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?
Answer: 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’.
Question (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?
Answer: 5% (2.5% SGST + 2.5%CGST) as per Sl.N0.109 of schedule I Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017.
Question (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?
Answer: 5% (2.5% SGST + 2.5 % CGST) as per Sl.N0.109 of schedule I Notification No. 1/2017 Central Tax ( Rate) dated 28.06 .2017.
Question (d): What will be the applicable rate of tax if the tobacco leaves are butted and sold to other dealers?
