Page 115 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : KALAGARLA SURYANARAYANA SON 201
forest trees which covered under HSN Code 1209 i.e. seeds, fruit and spores, of a
kind used for sowing. Henceforth Point No. 3 of the notes to the Chapter 12 ex-
plained that the items covered under the HSN Code 1209 are to be regarded as
seeds of a kind used for sowing. Therefore, seeds of forest trees irrespective of
their usage, shall be treated as seeds of a kind used for sowing purpose which
attracts “Nil” rate under the Central Goods and Services Tax Act, 2017/State GST
Act, 2017/Integrated Goods and Services Tax Act, 2017.
The applicant further submitted that the HSN Code 1209 contained an-
other item, seeds of fruit trees (Other than spices). Tamarind known as in Local
Indian languages “Chinta pandu”. Hence, Tamarind can also be called as the
fruit of Tamarind Tree and the seeds of Tamarind are known to be as seeds of
fruit trees which attracts “Nil” rate under GST Act.
7. Discussion and findings :
We have examined the issues raised in the application. The taxability
and the applicable rate of tax for the goods and services supplied or to be sup-
plied, as governed under the provisions of respective GST Acts are examined.
In view of the submission made by the applicant we find that the basic
issue before us is whether Tamarind Seed attracts Nil Rate of Tax under HSN
Code 1209 (Forest Trees Seed) or not. The appellant at the time of Personal Hear-
ing admitted that the tamarind seed/kernel as traded by them is sold to Millers
and meant for commercial/industrial purpose. Moreover no certificate or any
other document certifying the tamarind kernel/seed meant for sowing purpose
is submitted by the applicant. Coming to the classification issue, CBIC in its
FAQs published on HSN code and GST Rates dated 3-8-2017 gave a clarification
that tamarind kernel falls under HSN Code 1207. As per the Notification No.
1/2017-Central Tax (Rate), dated 28-6-2017 Tamarind kernel falls under the fol-
lowing entry :
Schedule-I (CGST 2.5% + SGST 2.5%)
S. Chapter/ Description of goods
No. Heading/
Sub-Heading/
Tariff Item
70 1207 Other oil seeds and oleaginous fruits (i.e. Palm nuts
and kernels, cotton seeds, Castor oil seeds,
Sesamum seeds, Mustard seeds, Saffower (Car-
thamustinctorius) seeds, Melon seeds, Poppy seeds,
Ajams, Mango kernel, Niger seed, Kokam) whether
or not broken, other than of seed quality

Tamarind seed is classified under HSN Code 1207 and attracts tax rate of 5%
(CGST 2.5% + SGST 2.5%).
RULING
8. The Tamarind Seed as referred by the applicant is classified under
Schedule-I as per S. No. 70 of Chapter/Heading/Sub-Heading/Tariff Item of
1207 as per the table of Notification No. 1/2017-Central Tax (Rate), dated 28-6-
2017 and the applicable rate of tax is 5% (2.5% under Central Tax and 2.5% State
Tax).

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GST LAW TIMES  13th August 2020  115