Supply of pulp wood is covered under HSN code 4403 which is enumerated at Sl.No.134 of Schedule-III and hence taxable at the rate of 18%.
Classification of goods— In the instant case, applicant is the proprietor of Sri Kodandarama Traders and he is in the business of supplying eucalyptus/subabul wood to paper mills. It is understanding of the applicant that the rate of tax to be payable on subabul is 5% from their reading of notification No.1 of 2017 as mentioned at Sl.No.198 under Chapter 4401 of the HSN Code.
Questions raised is as follows—
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?
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.
Held that— The Correct HSN is 4403 and tax rate is 18%.
Supply of pulp wood is covered under HSN code 4403 which is enumerated at Sl.No.134 of Schedule-III and hence taxable at the rate of 18%.
Classification of goods— In the instant case, applicant is the proprietor of Sri Kodandarama Traders and he is in the business of supplying eucalyptus/subabul wood to paper mills. It is understanding of the applicant that the rate of tax to be payable on subabul is 5% from their reading of notification No.1 of 2017 as mentioned at Sl.No.198 under Chapter 4401 of the HSN Code.
Questions raised is as follows—
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?
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.
Held that— The Correct HSN is 4403 and tax rate is 18%.