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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%.

Shanti Prime Publication Pvt. Ltd.

Rate of GST — Authority for Advance Ruling — Taxability on different forms of Tobacco Products – The applicant is a trader in tobacco in all varieties and form of tobacco available. After the introduction of GST, the commodity of tobacco is brought under the taxability from the stage of tobacco leaves itself. The applicant sought for advance ruling as what is the GST rate (i) on tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves, (ii) if the applicant purchases tobacco leaves from other dealers who purchased them farmer, for the purpose of trading, (iii) if the applicant segregates the tobacco into grades depending upon their size (width), colour/shade etc., and sells such graded tobacco leaf, (iv) if the tobacco leaves are butted and sold to other dealers, (v) if the applicant gets the tobacco leaves re dried without getting them threshed, (vi) if the applicant gets the tobacco threshed and re-dried on job work basis at GLT plants and then sells such threshed and re dried tobacco leaves.
Held that:- The Hon’ble Authority for Advance Ruling held that 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, for purchasing tobacco leaves from other dealers, for selling graded tobacco leaf, for selling butted leaves, and for selling re dried tobacco leaves without getting them threshed i.e. (i to v) the rate of tax is 5% as per Sl. No 109 of Schedule-I Notification No. 1/2017 (CGST) (CT) rate dt 28.6.2017. For selling threshed and re dried tobacco leaves after job work, the rate of tax is 28% as per Sl. No 13 of Schedule IV Notification No. 1/2017 (CGST) (CT) rate dt. 28.6.2017.Pragathi Enterprises [2018] 5 TAXLOK.COM 005 (AAR-AP)