In re Kalagarla Suryanarayana Son (GST AAR Andhra Pradesh)
Whether Tamarind Seed attracts Nil Rate of Tax under HSN Code 1209 (Forest Trees Seed) or Not?
Basic issue before us is whether Tamarind Seed attracts Nil Rate of Tax under HSN Code 1209 (Forest Trees Seed) or not. The appellant at the time of Personal Hearing admitted that the tamarind seed/kernel as traded by them is sold to Millers and meant for commercial /industrial purpose. Moreover no certificate or any other document certifying the tamarind kernel/ seed meant for sowing purpose is submitted by the applicant. Coming to the classification issue, CBIC in its FAQs published on HSN code and GST Rates dt: 03.08.2017 gave a clarification that tamarind kernel falls under HSN Code 1207. As per the Notification No.1/2017 – Central Tax (Rate) dt: 28.06.2017 Tamarind kernel falls under the following entry:
Schedule – I (CGST 2.5% + SGST 2.5%)
| Sl.No | Chapter / Heading/ Sub- Heading/ Tariff Item | Description of goods |
|---|---|---|
| 70 1 | 1207 | Other oil seeds and oleaginous fruits (i.e. Palm nuts and kernels, cotton seeds, Castor oil seeds, Sesamum seeds, Mustard seeds, Saffowcr (Carthamuslindorius) seeds, Melon seeds, Poppy seeds, Ajams, Mango kernel, Niger seed, Kokam) whether or not broken, other than of seed quality |
Tamarind seed is classified under HSN code 1207 and attracts tax rate of 5% (CGST 2.5% + SGST 2.5%)
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
(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 Kalagarla Suryanarayana Son, (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:
M/s Kalagarla Suryanarayana Son, E-Block 39, PW Market, Vizianagaram-535001, (hereinafter referred to as the Applicant) are wholesale dealers dealing in Tamarind, Tamarind seed, oil seeds, pulses and cereals.
The applicant had filed an application in form GST ARA-01, Dt: 21.05.2019, by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below
4. Question raised before the authority:
Whether Tamarind Seed attracts Nil Rate of Tax under HSN Code 1209 (Forest Trees Seed) or Not.
On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Assistant Commissioner (ST), Vizianagaram West Circle, Vizianagaram Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities too, to offer their remarks as per the Section 98(1) of CGST /APGST Act 2017.
In response, no remarks are received from the jurisdictional officer concerned regarding whether there arc any proceedings lying pending or passed relating to the applicant on the issue, for which the Advance Ruling sought by the applicant.
5. Record of Personal Hearing:
Sri K.S.N. Gupta, the proprietor of the firm appeared for Personal Hearing on 18.09.2019 and reiterated the submission already made in the application.
6. Applicants Interpretation of Law and Facts:
The applicant submits the following regarding the applicability of the rate of tax of tamarind seed.
1. I) The Government of India, Ministry of Finance, Department of Revenue issued a Notification No. 2/2017 Central Tax (Rate) Dated. 28 June 2017, Under CGST Act. In the said notification, Serial Number 86 of the Schedule is specified as under.
