GST Applicability of Tamarind Seeds and Tamarind Kernel Powder

In this article, we are discussing CBIC clarifications relating to GST applicability on Tamarind Seeds and Tamarind Kernel Powder. In this regard, we will refer the CBIC Circulars as below:

Circular No. 163/19/2021-GST dated 06-10-2021

Circular No. 52/26/2018-GST dated 09-08-2018

Applicability of GST on Tamarind Seeds

The CBIC circular No. 163/19/2021-GST dated 06^th October 2021 clarified as below:

• Representations have been received seeking clarification regarding classification and applicable GST rates on tamarind seeds. The dispute is in classification of tamarind seeds between tariff heading 1207 and 1209.

• As per general Explanatory Notes to HS 2017, heading 1209, covering seeds, fruit and spores, of a kind used for sowing, covers tamarind seeds. As per Chapter Note 3 to Chapter 12, for the purposes of heading 1209, beet seeds, grass and other herbage seeds, seeds of ornamental flowers, vegetable seeds, seeds of forest trees, seeds of fruit trees, seeds of vetches (other than those of the species Vicia Faba) or of lupines are to be regarded as “seeds of a kind used for sowing”.

• Thus, tamarind seeds, even if used for any purpose other than sowing, is liable to be classified under heading 1209 and hitherto attracted nil GST rate, irrespective of its use (for the period 01.07.2017 to 30.09.2021).

• The GST Council in its 45^th meeting recommended GST rate on seeds, falling under heading 1209, meant for any use other than sowing to 5% (Sl. No. 71A of schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017 and Nil rate would apply only to seeds for this heading if used for sowing purposes (Sl. No. 86 of schedule of notification no. 2/2017- central tax (rate) dated 28.06.2017).

• Hence, with effect from 01.10.2021, tamarind seeds and other seeds falling under heading 1209, (i.e. including tamarind seeds), if not supplied as seed for sowing, would attract GST at the rate of 5%.

GST rate on treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder

The CBIC vide circular no. 52/26/2018-GST clarified as under:

• Representation have been received seeking clarification regarding GST rate applicable on treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.

• There are two grades of Tamarind Kernel Powder (TKP):- Plain (unmodified) form (hot, water soluble) and Chemically treated (modified) form (cold, water soluble).

• As per Sl. No. 76A of schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017, 5% GST rate was prescribed on Tamarind Kernel Powder falling under chapter 13. However, certain doubts have been expressed regarding GST rate on Tamarind Kernel Powder, as the said notification does not specifically mention the word “modified”.

• As both plain (unmodified) tamarind kernel powder and treated (modified) tamarind kernel powder falls under chapter 13, it is hereby clarified that both attracts 5% GST in terms of the said notification.

Source: GST CBIC Circulars