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Chapter 13 - Lac; gums, resins and other vegetable saps and extracts

Notes
Heading 1302 applies, inter alia, to liquorice extract and extract of pyrethrum. extract of hops, extract of aloes and opium.
The heading does not apply to:
  • liquorice extract containing more than 10% by weight of sucrose or put up as confectionery (heading 1704);
  • malt extract (heading 1901);
  • extracts of coffee, tea or mate (heading 2101);
  • vegetable saps or extracts constituting alcoholic beverages (Chapter 22);
  • camphor, glycyrrhizin or other products of heading 2914 or 2938;
  • medicaments of heading 3003 or 3004 or blood - grouping reagents (heading 3006);
  • tanning or dyeing extracts (heading 3201 or 3203);
  • essential oils, concretes, absolutes, resinoids, extracted oleoresins, aqueous distillates or aqueous solutions of essential oils or preparations based on odoriferous substances of a kind used for the manufacture of beverages (Chapter 33);
  • natural rubber, balata, gutta-percha, guayule, chicle or similar natural gums (heading 4001)
GST Rates of Goods
Chapter HeadingDescriptionRate of GSTScheduleSr.No
13Tamarind kernel powder5%I76A<sup>1</sup>
1301Natural gums, resins, gum-resins and oleoresins (for example, balsams)[other than lac and shellac]5%I75
1302vegetable saps and extracts; pectic substances, pectinates and pectates;agar-agar and other mucilage and other mucilage and thickeners, whether or not modified,derived from vegetable products5%I3
1301Compounded asafoetida commonly known as heeng5%I76
1302Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products [other than tamarind kernel powder]18%III3<sup>2</sup>
1301Lac and Shellac0%-92
Other Exemptions
DescriptionNotification
Exemption from Registration - Small Taxpayers having turnover below threshold limitNotification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old SchemeNotification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New SchemeNotification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST @6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSDNotification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to ExporterNotification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutionsNotification No. 45/2017-C.T. (Rate), dated 14-11-2017
Departmental Clarifications / Case Law
There are two grades of Tamarind Kernel Powder (TKP):
Plain (unmodified) form (hot, water soluble) and Chemically treated (modified) form (cold, water soluble). As per S. No. 76A of schedule-1 of notification No. 1/2017-Central Tax (Rate), dated 28-6-2017, 5% GST rate was prescribed on Tamarind Kernel powder falling under chapter 13. However, certain doubts have been expressed regarding GST rate on Tamarind kernel powder, as the said notification does not specifically mention the word "modified". As both plain (unmodified) tamarind kernel powder and treated (modified) tamarind kernel powder fall under chapter 13, it is hereby clarified that both attract 5% GST in terms of the said notification. Circular No. 52/26/2018-GST, dated 9-8-2018
Glucomannan (Propol A)-Vegetable extracts
Fact that it swells in cold water, is not by itself sufficient to determine its classification as mucilage - Classifiable under sub-heading 1302.19 of the Customs Tariff Act, 1975 and not under Heading 30.03. Commissioner v Cadila Chemicals Ltd. 2002 (139) ELT 362 (Tri. - Mumbai )
Oleo Pine Resin extracted without aid of power as certified by supplier is classifiable under CTH 1301.90-Commissioner v Sudharsan Pine Products Ltd- 1999 (111) ELT 78 (Tribunal).
Resin - Damar Batu' imported is classifiable under CTH 1301.90- Dhana Exim v Commissioner- 2006 (193) ELT 565 (Tri.- Chennai).
Storax Prepared B.P. having purified Balsam is classifiable under CTH 1301.90 - Collector v Bengal Chemicals & Pharmaceuticals Ltd.- 1990 (47) E.L.T 374 (Tribunal).
Tamrind kernel powder
Tamarind kernel powder falls under heading 1302, and attracts 18% GST. C.B.1. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017