QUESTION
Mr. A is a manufacturer of Sugar and Molasses. The main Raw Material is Sugar Cane which is an agriculture produce and is exempted from GST. He has paid GST on final product Sugar and Molasses on the appropriate rate as per GOVT Norms. Now he wants to sale Cane Juice to the Distillery for the production of Ethanol or other Sprit. What will be the applicability of GST on Cane Juice. ( What is The rate of GST on Cane Juice.)
ANSWER
FACTS OF THE CASE:
Applicability of GST on Sugar Cane Juice.
LAW APPLICABLE:
Notification No. 01/2017 IGST (Rate) Schedule I: 5%
| 41. | 2009 | Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter. |
| - Juice of any other single fruit or vegetable | |
| 2009 81 00 | --Cranberry (vaccinium macrocarpon, Vaccinium Oxycoccos Vaccinium vitisidaea) juice |
| 2009 89 | --Other |
| 2009 89 10 | --- Mango juice |
| 2009 89 90 | --- Other |
| 2009 90 00 | - Mixtures of juices |
CONCLUSION: Sugarcane Juice is covered under HSN 2009 89 90 and is taxable @ 5%. (Reply dt. 11/11/2021)