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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% under reverse charge

Rate of Tax In the instant case, applicant is seeking Advance Ruling on the following issues:

(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 themselves?

(b) What will be the applicable rate of tax if the applicant purchases tobacco leaves form other dealers who have purchased them from farmers, for the purpose of trading?

(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?

(d) What will be the applicable rate of tax if the tobacco leaves are butted and sold to other dealers?

(e) What is the applicable rate of tax if the applicant gets the tobacco leaves re-dried without getting them threshed and sold them?

(f) What will be the applicable rate of tax if the applicant gets the tobacco leaves threshed and re-dried?

(g) What will be the applicable rate of tax if the applicant gets the tobacco threshed and re-dried on job work basis at others' premises and then sells such threshed and re-dried tobacco leaves to others?

Held that—
a) 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-CT (Rate), under 'Reverse charge'.

b) Rate of tax will be 5% if the applicant purchases tobacco leaves from other dealers who have purchased them from farmers.

c) Rate of tax will be 5% 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.

d) Rate of tax will be 5% if the tobacco leaves are butted and sold to other dealers

e) Rate of tax will be 5% if the applicant gets the tobacco leaves re-dried without getting them threshed and sold them.

f) Rate of tax will be 28% if the applicant gets the tobacco leaves threshed and re-dried

g) Rate of tax will be 28% if the applicant gets the tobacco threshed and re-dried on job work basis at others' premises and then sells such threshed and re-dried tobacco leaves to others—Deccan Tobacco Company, In Re… [2019] 17 TAXLOK.COM 134 (AAR-AP)