This circular provides clarifications on the applicable GST rates for certain goods and services where doubts and divergent practices were noticed across the field.

It clarifies that fortified toned milk enriched with vitamins A and D continues to attract NIL GST, as it remains classifiable under HSN 0401. Refined beet and cane sugar, including all forms falling under heading 1701, attract 5% GST, and are not covered under the 12% rate meant for other specified sugar products. Both plain and modified tamarind kernel powder fall under Chapter 13 and attract 5% GST. Supply of drinking water for public purposes, when not supplied in sealed containers, is exempt from GST.

For medical products, normal human plasma attracts 5% GST, whereas plasma products not specifically covered under concessional entries attract 12% GST. Wipes such as baby wipes or facial wipes are to be classified based on their essential character; wipes impregnated with cosmetics fall under heading 3307 and those coated with soap or detergent under heading 3401, both attracting 18% GST. Imitation zari (Kasab) thread, being metallised yarn, is classifiable under heading 5605 and attracts 12% GST.

The circular further clarifies that marine engines supplied as parts of fishing vessels attract 5% GST. A cotton quilt is defined based on its filling material; quilts filled with cotton qualify as cotton quilts irrespective of cover material, with GST rate depending on the value per piece. In case of bus body building, supply of a complete bus attracts 28% GST, whereas body fabrication on a chassis supplied by the principal is treated as a service taxable at 18% GST. Lastly, disc brake pads for automobiles are classifiable as motor vehicle parts under heading 8708 and attract 28% GST.