This circular provides clarifications on GST rates and classification of various goods, based on the recommendations of the GST Council, to resolve classification disputes and ensure consistent tax treatment.

It clarifies that only fresh fruits and nuts supplied in their natural state are exempt from GST, while dried or intentionally processed fruits and nuts attract GST at the applicable rates. Tamarind seeds are clarified to fall under heading 1209 and were exempt till 30 September 2021; from 1 October 2021, they attract 5% GST when not used for sowing. Copra is distinguished from coconut and is clarified to attract GST at 5%, as exemption available to fresh or dried coconut does not apply to copra.

Pure henna leaves and henna powder without additives are classified under heading 1404 and attract GST at 5%, and the same rate applies to mehndi paste. Scented sweet supari and flavoured or coated illaichi are treated as value-added products and attract GST at 18%. Brewers’ spent grain, DDGS, and similar residues are classified under heading 2303 and attract GST at 5%.

The circular further clarifies that all goods falling under heading 3006 attract GST at 12%, and all laboratory reagents under heading 3822 are also taxable at 12%. For petroleum operations, a single essentiality certificate issued by the Directorate General of Hydrocarbons is sufficient for inter-state stock transfers of concessional-rate goods within the same entity.

It also clarifies that UPS/inverters and external batteries sold together are to be taxed separately, specified renewable energy projects may apply the 70:30 valuation mechanism retrospectively (without refund), and fibre drums supplied at 12% GST prior to 1 October 2021 will be treated as tax-paid due to past ambiguity.