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Last Modified: Fri, Aug 10 2018. 11 53 PM IST

Government clarifies GST rates of over a dozen products

The tax clarifications seek to prevent unintended violations of the law arising from different interpretation of product classification

The ministry also said that 5% GST rate is applicable on both fertilizers supplied for direct use as well as on fertilizer intermediates used in production of complex fertilizers. Photo: PTI
Gireesh Chandra Prasad

New Delhi: The central government on Friday sought to remove ambiguity around goods and services Tax tGST) applicable on over a dozen products including fortified milk, petroleum gas, human blood plasma and fertilizers in a bid to avoid confusion and disputes.

The finance ministry clarified that fortified milk as well as milk for the public when not served in sealed bottles are exempt from tax, while beet and cane sugar will attract 5% tax. It also said that normal human plasma is taxed at 5% while plasma products are taxed at 12%. Baby wipes laced with perfumes, cosmetics and soap attract 18% GST. Parts of marine engines used in fishing boats are taxed at 5%.

The clarifications also seek to prevent unintended violations of the law arising from different interpretation of product classification.

Experts said the clarifications address rate related ambiguities faced by industries like automotive, fertilizers and oil refineries and attempt to bring uniformity in the rates charged by various players. “Today, various players have been charging different rates on the basis of their interpretation of the law which in some cases are affecting their market competitiveness,” said Abhishek Jain, tax partner, EY.

The ministry also said that 5% GST rate is applicable on both fertilizers supplied for direct use as well as on fertilizer intermediates used in production of complex fertilizers.

Topics: GSTgoods and services taxrevised GST ratesGST on milkGST on fertilisers

First Published: Fri, Aug 10 2018. 11 52 PM IST

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