The Applicant is a registered manufacturer cum supplier under GST, engaged in the manufacture of Ramming Mass. Ramming Mass is used as a refractory material for lining of induction furnaces to withstand very high temperatures. The two basic ingredients used in the manufacture of Ramming Mass are the Quartz granules and Boric Acid.

The Applicant sought Advance Ruling on following issues:

1. Classification and applicable rate of GST on Ramming Mass used in lining of induction furnace.
2. Classification and applicable rate of GST on crushed quartz stones used in lining of furnace through claimed as not containing Boric Acid.

Explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings), with an added refractory binder 

Therefore, to qualify for classification under heading 3816, refractory binder is required to be added to such powdered/grained quartz/quartzite mixture. 

In view of above Ramming Mass consists of crushed quartz powder in unison with boric acid added in a specified ratio which falls under chapter heading no. 3816 and attracts 18% of GST. Further crushed quartz stone on standalone basis cannot be used as a lining of furnace and qualify the Tariff head no. 2506 and GST rate of 5%.

CRUX: 1. Ramming Mass which is a Refractory Material, is classifiable under HSN code 3816 and would attract 18% rate of tax under GST (9% CGST + 9% SGST).

2. Quartz powder obtained by crushing Quartz stones falls under HSN code 2806 and would attract 5% rate of tax under GST (2.5% CGST + 2.5% SGST) .