Chapter 15 - Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes

Notes

1.This Chapter does not cover:

(a) pig fat or poultry fat of heading 0209;
(b) cocoa butter, fat or oil (heading 1804);
(c) edible preparations containing by weight more than 15% of the products of heading 0405 (generally Chapter 21);
(d) greaves (heading 2301) or residues of headings 2304 to 2306;
(e) fatty acids, prepared waxes, medicaments, paints, varnishes, soap, perfumery, cosmetic or toilet preparations, sulphonated oils or other goods of Section VI; or
(f) factice derived from oils (heading 4002).

2. Heading 1509 does not apply to oils obtained from olives by solvent extraction (heading 1510).

3. Heading 1518 does not cover fats or oils or their fractions, merely denatured, which are to be classified in the heading appropriate to the corresponding undenatured fats and oils and their fractions.

4. Soap-stocks, oil foots and dregs, stearin pitch, glycerol pitch and wool grease residues fall in heading 1522.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
1501	Pig fats (including lard) and poultry fat, other than MAI of heading 0209 or 1503	5%	I	19
1502	Fats of bovine animals, sheep or goats, other than those of heading 1503	5%	I	20
1503	Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared	5%	I	21
1504	Fats and oils and their fractions, of fish or marine mammals,whether or not refined, but not chemically modified	5%	I	22
1505	Wool grease and fatty substances derived therefrom (including lanolin)	5%	I	23
1506	Other animal fats and oils and their fractions, whether or not refined,but not chemically modified	5%	I	24
1507	Soya-bean oil and its fractions, whether or not refined, but not chemically modified	5%	I	79
1508	Ground-nut oil and its fractions, whether or not refined, but not chemically modified.	5%	I	80
1509	Olive oil and its fractions, whether or not refined, but not chemically modified.	5%	I	81
1510	Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils or fractions with oils or fractions of heading 1509	5%	I	82
1511	Palm oil and its fractions, whether or not refined, but not chemically modified.	5%	I	83
1512	Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified.	5%	I	84
1513	Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified.	5%	I	85
1514	Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified.	5%	I	86
1515	Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified.	5%	I	87
1516	Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared.	5%	I	88
1517	Edible mixtures or preparations of animal fats or animal oils or of fractions of different animal fats or animal oils of this Chapter, other than edible fats or oils or their fractions of heading 1516	12%	II	26
1518	Animal fats and animal oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified of included	12%	II	27
1521	Vegetable waxes (other than triglycerides), Beeswax, other insect waxes and spermaceti, whether or not refined or coloured	5%	I	8
1516	Animal fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared.	12%	II	25
1517	Edible mixtures or preparations of vegetable fats or vegetable oils or of fractions of different vegetable fats or vegetable oils of this Chapter, other than edible fats or oils or their fractions of heading 1516	5%	I	89
1518	Vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516	5%	I	90
1521	Degras, residues resulting from the treatment of fatty substances or animal or vegetable waxes	18%	III	9
1517 10	All goods i.e. Margarine, Linoxyn	5%	I	6
1520 00 00	Glycerol, crude; glycerol waters and glycerol lyes	5%	I	7
7	All goods of seed quality	0%	-	59
9	All goods of seed quality	0%	-	59
10<sup>1</sup>	All goods of seed quality	0%	-	59
9<sup>1</sup>	All goods of seed quality	0%	-	59
0901	Coffee beans, not roasted	0%	-	60
0902	Unprocessed green leaves of tea	0%	-	61
0909	Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries [of seed quality]	0%	-	62
0910 11 10	Fresh ginger, other than in processed form	0%	-	63
0910 30 10	Fresh turmeric, other than in processed form	0%	-	64

Other Exemptions

Description	Notification
Exemption from Registration _ small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 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. 32017-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 CSD	Notification 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 Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Palm Stearin

Now there being specific Tariff Item 'Refined bleached deodorized palm stearin' classifiable under 1511 90 30 - C.B.E. & C. Circular No. 81/2002-Customs, dated 3-12-2002 was issued in the context of the then existing entries. Similarly. judgment of Hon 'ble Supreme Court, in Commissioner of Central Excise, Customs & Service Tax, Vishakhapatnam v Jocil Ltd. [2011 (263) ELT 9 (SC)], was rendered for the period August. 2003 to November. 2004. in the context of entries in the First Schedule to the Customs Tariff Act, 1975 existing during that period. In Re: Gokul Agro Resources Limited, 2018 (18) G.S. T.L. 68 (A.A.R. - GST)

Energy-G premium oil

The product is inedible or not fit for human consumption and purely for manufacturing of poultry feed-manufactured out of Vegetable fats/oils and not from animal fats/oils - classification of product is HSN 1518 - subject to 5% GST as per Schedule I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 and corresponding SGST Notification. In Re: Agarwal Industries Pvt. Ltd. 2018 (16) G.S.T.L. 276 (A.A.R. -GST).

Baker shortening

A careful reading of the HSN Notes will demonstrate that products under Chapter 1516 wholly and partly hydrogenated oils and are frequently used as constituents in the preparation of edible fats of heading 15.17. It is also clear that margarine, edible mixtures or preparation of animal or vegetable fats or oils wholly fall under heading 15.16, which are other than the edible fats or oils for their fractions of heading 15.16. For classifying the goods under Chapter heading 1517, it would be necessary to show that the same had been further prepared by a processes like emulsification, churning, texturation etc., to change the basic character of the same from being a product classifiable under Chapter Heading 1517.- Adani Wilmar Ltd. v Commissioner-2012 (278) ELT 663 (Tri.- Ahmd.).

Bakery shortenings

especially mentioned in explanatory notes to CTH 1517 as nature of mixtures and preparations of animal or vegetable fats or oils - classifiable under CTH 1517- Shree Gopal Vanaspati v Commissioner- 2014 (310) ELT 308 (Tri.-Del.).

Inca Inchi Oil

The Revenue has not even got the product tested by the Drugs Control authorities to come to the conclusion that the product has therapeutic or prophylactic properties or have been prepared or made so as to have these properties. On the contrary, we find that the product description on the packaging itself, clearly indicates that the product does not have any medicinal use and is not intended to diagnose, treat, cure or prevent any disease. Product classifiable as 'Extra virgin vegetable oil' under CTH 1515 90 91 and not as P or P medicines under CTH 3004.- Supreme Enterprises v Commissioner 2015 (316) ELT 274 (Tri.-Mumbai).

Palm Stearin

In the case at hand, the subject matter in question is specifically identified in Ch. sub-heading No. 3823 11 as "Palm Stearin", and further differentiated as "Crude" and "RBD" in sub-heading Nos. 3823 11 11 and 3823 11 12 respectively. The Explanatory Notes are categorical in affirming the accepted practice that Rule 3(b), which the CESTAT and the Respondent has referred to, shall be used only if classification under Rule 3(a) fails. In this instance, we are of the considered opinion that the issue of the essential character of the subject matter in question may be resorted to only if identification under Rule 3(a) is impossible. Since the description offered in Chapter 38 certainly attempts to identify 'Palm Stearin' within its ambit cannot be classified as animal or vegetable edible oil as for the goods to fall under Chapter 15.- Cmmissioner v foci! Lui.- 2011 (263) ELT 9 (SC).

Palm oil

products containing containing 9% to 19% of palmitic acid with high ester value and mainly composed of glycerides of stearic acid along with free fatty acid are classifiable under CTH 1511 10 00 and not under CTH 3823 — Gokul Enterprises v Commissioner 2009 (235) ELT 529 (Tri.-Ahmd.).

Vegetable oils

Mixture of vegetable oils is classifiable under CTH 1518 00 40 and not under CTH 1518 00 39-Commissioner v SPA Petroleum Products Pvt. Ltd. 2009 (234) ELT 151 (Tri.-Ahmd.).