GST on Supply of Wood Logs for Pulping

The CBIC issued Circular No. 80/54/2018-GST dated 31^st December 2018 clarifying on various GST rates & classification issues including the issue of GST on supply of wood logs for pulping. The Circular reads as below:

• Representation has been received seeking clarification on applicability of GST rate on wood log for pulping. Wood in the rough (whether or not stripped of bark or sapwood, or roughly squared) is classified under heading 4403 and attracts 18% GST.

• As per HSN, heading 4403 also covers

“timbers for sawing; poles for telephone, telegraph or electrical power transmission lines; un-pointed and unsplit piles, pickets, stakes, poles and props; round pit-props; logs, whether or not quarter-split, for pulping; round logs for manufacture of veneer sheets, etc; logs for the manufacture of match sticks, wood ware etc;”

• Thus, it is clarified that wood logs or any kind of wood in the rough/ timer, including the wood in rough/ log/ timber used for pulping falls under heading 4403 and attracts GST at the rate of 18%.

Source: CBIC Circular No. 80/54/2018