Chapter 36 - Explosives; pyrotechnic products; matches; p:vrophoric alloys; certain combustible preparations

Notes

This Chapter does not cover separate chemically defined compounds other than those described in Note 2(a) or 2(b) below.
The expression "articles of combustible materials" in heading 3606 applies only to:

(a) metaldehyde, hexamethylenetetramine and similar substances, put up in forms (for example, tablets, sticks or similar forms) for use as fuels; fuels with a basis of alcohol, and similar prepared fuels, in solid or semi-solid form;
(b) liquid or liquefied-gas fuels in containers of a kind used for fillingor refilling cigarette or similar lighters and of a capacity not exceeding 300 cm3; and
(c) resin torches, firelighters and the like

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
3601	Propellant powders	18%	III	71
3602	Prepared explosives, other than propellant powders; such as Industrial explosives	28%	IV	35
3603	Safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators	18%	III	72
3604	Fireworks, signalling flares, rain rockets, fog signals and other pyrotechnic articles Fireworks, signalling flares, rain rockets, fog signals and other pyrotechnic articles	28%	IV	36
3606	Ferro-cerium and other pyrophoric alloys in all forms; articles of combustible materials as specified in Note 2 to this Chapter; such as liquid or liquefied-gas fuels in containers of a kind used for filling i or refilling cigarette or similar lighters	28%	IV	37
3602	Prepared explosives, other than propellant powders; such as Industrial explosives	18%	III	71
3604	Fireworks, signalling flares, rain rockets, fog signals and other pyrotechnic articles 28% IV Fireworks, signalling flares, rain rockets, fog signals and other pyrotechnic articles	18%	III	72A
3604	Matches (other than handmade safety matches [3605 00 10])	18%	III	73
3606	Ferro-cerium and other pyrophoric alloys in all forms; articles of combustible materials as specified in Note 2 to this Chapter; such as liquid or liquefied-gas fuels in containers of a kind used for filling nr refilling cigarette or similar lighters	18%	III	73A
3605 00 10	Handmade safety matches Explanation.—For the purposes of this entry, handmade matches mean matches, in or in relation to the manufacture of which, none of the following processes is ordinarily carried on with the aid of power, namely:— (i) frame filling; (ii) dipping of splints in the composition for match heads; (iii) filling of boxes with matches; (iv) pasting of labels on match boxes, veneers or cardboards; (v) packaging	5%	I	187

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 @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 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

Ammonium Nitrate Fuel Oil (ANFO)

Ammonium Nitrate Fuel Oil (ANFO) are goods and the same is leviable to duty under Sub-heading 3602.00. Commissioner v Andhra Cements Co. Ltd. 2()01 (132) ELT 712 (Tri. - Chennai).

Liquid Oxygen

The Liquid Oxygen Explosives has a specific name, use and character. They are known in the market and they are also traded.. The liquid oxygen has to be considered as goods within the meaning of Section 2(f) of the Central Excises & Salt Act. Therefore, the Collector was justified in holding the item as goods and are chargeable to duty under Chapter Heading 36.01 of the Central Excise Tariff Act, 1985. Indian Oxygen Ltd. v Collector 1995 (80) ELT 573 (Tribunal).