Page 91 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : DECCAN TOBACCO COMPANY 177
8. In the present case the applicant purchases the dried leaves on auc-
tion platform and trades the same to other dealers or exporters and further en-
gaged in threshing and redrying of tobacco leaves on job work basis for other
traders or manufacturers. In the light of the facts and legal position the ruling is
given as under.
RULING

Question (a) : What is the rate of GST applicable on tobacco leaves
procured at tobacco auction platforms or directly from
farmers, which are cured and dried by farmers them-
selves?
Answer : The GST Rate of tax for the tobacco leaves procured at
tobacco auction platforms or directly from farmers,
which are cured and dried by farmers themselves is 5%
as per the Notification No. 4/2017-Central Tax (Rate),
under ‘Reverse charge’.
Question (b) : What will be the applicable rate of tax if the applicant
purchases tobacco leaves from other dealers who have
purchased them from farmers, for the purpose of trad-
ing?
Answer : 5% (2.5% SGST + 2.5% CGST) as per Sl. No. 109 of
Schedule-I Notification No. 1/2017-Central Tax (Rate),
dated 28-6-2017.
Question (c) : What will be the applicable rate of tax if the applicant
segregates the tobacco into grades depending upon their
size (width), colour/shade, length, texture of the leaf
etc., and sells such graded tobacco leaf?
Answer : 5% (2.5% SGST + 2.5% CGST) as per Sl. No. 109 of
Schedule-I Notification No. 1/2017Central Tax (Rate),
dated 28-6-2017.
Question (d) : What will be the applicable rate of tax if the tobacco
leaves are butted and sold to other dealers?
Answer : 5% (2.5% SGST + 2.5% CGST) as per Sl. No. 109 of
Schedule-I Notification No. 1/2017-Central Tax (Rate),
dated 28-6-2017.
Question (e) : What is the applicable rate of tax if the applicant gets the
tobacco leaves redried without getting them threshed
and sold them?
Answer : 5% (2.5% SGST + 2.5% CGST) as per Sl. No. 109 of
Schedule-I Notification No. 1/2017-Central Tax (Rate),
dated 28-6-2017.
Question (f) : What will be the applicable rate of tax if the applicant
gets the tobacco leaves threshed and re-dried?
Answer : 28% (14% SGST + 14% CGST) as per Sl. No. 13 of Sched-
ule-IV Notification No. 1/2017-Central Tax (Rate), dated
28-6-2017.
GST LAW TIMES  13th August 2020  91