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Tuesday 23 May 2017

GST rates for the chemical industry in India - A quick guide

BANGALORE, INDIA: The Goods and Services Tax (GST) is a critical change that the industry has been waiting for. Even on an international level, the industry is keeping an active watch given its effects on the growth and revenue of companies.
Considering the chemical industry the government has kept a large number of items under the 18% tax slab, while those under the nil and 5% category bring a good momentum for the industry.
The GST rate schedule for goods is per the discussions in the GST Council Meeting held on 18 May 2017.
Below are the items and tax slabs that are of particular interest to the chemical industry:
(Salt; sulphur; earths and stone; plastering materials, lime and cement)
 Nil:
1. Common salt, by whatever name it is known, including iodized and other fortified salts, sendha namak [rock salt], kala namak 
5%
All goods not specified elsewhere
1. Salt other than common salt.
2. Unroasted iron pyrites.
3. Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and colloidal sulphur.
4. Natural graphite.
5. Natural sands of all kinds, whether or not coloured, other than metal-bearing sands.
6. Quartz (other than natural sands); quartzite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.
7. Kaolin and other kaolinic clays, whether or not calcined.
8. Other clays (not including expanded clays of heading 6806), andalusite, kyanite and sillimanite whether or not calcined; mullite; chamotte or dinas earths.
9. Chalk.
10. Natural calcium phosphates, natural aluminium calcium phosphates and phosphatic chalk.
11. Natural barium sulphate (barytes); natural barium carbonate (witherite), whether or not calcined, other than barium oxide.
12. Siliceous fossil meals (for example, kieselguhr, tripolite and diatomite) and similar siliceous earths, whether or not calcined, of an apparent specific gravity of 1 or less.
13. Pumice stone; emery; natural corundum, natural garnet and other natural abrasives, whether or not heat treated.
14. Slate, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.
15. Ecaussine and other calcareous monumental or building stone; alabaster [other than marble Marble and travertine]
16. Porphyry, basalt, sandstone and other monumental or building stone, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.
17. Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated; macadam of slag, dross or similar industrial waste, whether or not incorporating the materials cited in the first part of the heading; tarred macadam; granules cheeping and powder of stones.
18. Dolomite, whether or not calcined or sintered, including dolomite roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape; dolomite ramming mix.
19. dolomite, Not calcined or sintered
20. Natural magnesium carbonate (magnesite); fused magnesia; dead-burned (sintered) magnesia, whether or not containing small quantities of other oxides added before sintering; other magnesium oxide, whether or not pure.
21. Gypsum; anhydrite; plasters (consisting of calcined gypsum or calcium sulphate) whether or not coloured, with or without small quantities of accelerators or retarders.
22. Limestone flux; limestone and other calcareous stone, of a kind used for the manufacture of lime or cement.
23. Quicklime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of heading 2825.
24. Asbestos.
25. Mica, including splitting; mica waste.
26. Natural steatite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape; talc.
27. Natural borates and concentrates thereof (whether or not calcined), but not including borates separated from natural brine; natural boric acid containing not more than 85% of H3BO3
28. Feldspar; leucite, nepheline and nepheline syenite; fluorspar.
29. Mineral substances not elsewhere specified or included.
12%
1. Marble and travertine blocks 
2. Granite blocks.
18%
1. Sulphur recovered as by-product in refining of crude oil
28%
1. Marble and travertine, other than blocks 
2. Granite, other than blocks 
3. Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers 
(Ores, slag and ash)
5%
All ores and concentrates 
1. Iron ores and concentrates, including roasted iron pyrites
2. Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight.
3. Copper ores and concentrates.
4. Nickel ores and concentrates.
5. Cobalt ores and concentrates.
6. Aluminium ores and concentrates.
7. Lead ores and concentrates.
8. Zinc ores and concentrates.
9. Tin ores and concentrates.
10. Chromium ores and concentrates.
11. Tungsten ores and concentrates.
12. Uranium or thorium ores and concentrates.
13. Molybdenum ores and concentrates.
14. Titanium ores and concentrates.
15. Niobium, tantalum, vanadium or zirconium ores and concentrates.
16. Precious metal ores and concentrates.
17. Other ores and concentrates
1. Granulated slag (slag sand) from the manufacture of iron or steel 
18%
All goods not specified elsewhere, that is other slag, dross, ash and residues 
1. Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel.
2. Slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds.
3. Other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste.
(Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes)
5%
1. Coal; briquettes, ovoids and similar solid fuels manufactured from coal 
2. Lignite, whether or not agglomerated, excluding jet. 
3. Peat (including peat litter), whether or not agglomerated 
4. Coke and semi coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon 
5. Tar distilled from coal, from lignite or from peat 
6. Kerosene PDS
7. Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to household domestic consumers or to non-domestic exempted category (NDEC) customers by the Indian Oil Corporation Limited, Hindustan petroleum Corporation Limited or Bharat Petroleum Corporation Limited.
8. Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons 
12%
1. Bio-gas
18%
All goods not specified elsewhere
1. Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the nonaromatic constituents, such as Benzole (benzene), Toluole (toluene), Xylole (xylenes), Naphthelene
2. Pitch and pitch coke, obtained from coal tar or from other mineral tars.
3. Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparation; waste oils; [other than Avgas and Kerosene PDS], such as Superior kerosene Oil (SKO), Fuel oil, Base oil, Jute batching oil and textile oil, Lubricating oil, Waste oil [Other than petrol, Diesel and ATF, not in GST]
9. Petroleum gases and other gaseous hydrocarbons, such as Propane, Butanes, Ethylene, propylene, butylene and butadiene [Other than Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to household domestic consumers or to non-domestic exempted category (NDEC) customers by the Indian Oil Corporation Limited, Hindustan petroleum Corporation Limited or Bharat Petroleum Corporation Limited]
4. Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured.
5. Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.
6. Bitumen and asphalt, natural; bituminous or oil shale and tar sands; asphaltites and asphaltic rocks.
7. Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, cut-backs).
28%
1. Avgas 
(Inorganic chemicals)
5%
1. Thorium oxalate
2. Enriched KBF4 (enriched potassium fluroborate)
3. Enriched elemental boron
4. Nuclear fuel
5. Nuclear grade sodium 
6. Heavy water and other nuclear fuels 
7. Compressed air 
12%
1. Medicinal grade hydrogen peroxide 
2. Anaesthetics
3. Potassium Iodate 
4. Iodine
5. Micronutrients, which are covered under serial number 1(f) of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 1985
6. Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470: 2002
7. Steam
18%
All goods not specified elsewhere
1. Fluorine, chlorine, bromine and iodine.
2. Sulphur, sublimed or precipitated; colloidal sulphur.
3. Carbon (carbon blacks and other forms of carbon not elsewhere specified or included).
4. Hydrogen, rare gases and other nonmetals.
5. Alkali or alkaline-earth metals; rare-earth metals, scandium and yttrium, whether or not intermixed or interalloyed; mercury.
6. Hydrogen chloride (hydrochloric acid); chloro sulphuric acid.
7. Sulphuric acid; oleum.
8. Nitric acid; sulphonitric acids.
9. Diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined.
10. Oxides of boron; boric acids.
11. Other inorganic acids and other inorganic oxygen compounds of non-metals.
12. Halides and halide oxides of non-metals.
13. Sulphides of non-metals; commercial phosphorus trisulphide.
14. Ammonia, anhydrous or in aqueous solution.
15. Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); peroxides of sodium or potassium.
16. Hydroxide and peroxide of magnesium; oxides, hydroxides and peroxides, of strontium or barium.
17. Zinc oxide; zinc peroxide.
18. Artificial corundum, whether or not chemically defined; aluminium oxide; aluminium hydroxide.
19. Chromium oxides and hydroxides.
20. Manganese oxides.
21. Iron oxides and hydroxides; earth colours containing 70% or more by weight of combined Iron evaluated as Fe2O3.
22. Cobalt oxides and hydroxides; commercial cobalt oxides.
23. Titanium oxides.
24. Lead oxides; red lead and orange lead.
25. Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides.
26. Fluorides; fluorosilicates, fluoroaluminates and other complex fluorine salts.
27. Chlorides, chloride oxides and chloride hydroxides; bromides and bromide oxides; iodides and iodide oxides.
28. Hypochlorites; commercial calcium hypochlorite; chlorites; hypobromites.
29. Chlorates and perchlorates; bromates and perbromates; iodates and periodates.
30. Sulphides; polysulphides, whether or not chemically defined.
31. Dithionites and sulphoxylates.
32. Sulphites; thiosulphates.
33. Sulphates; alums; Peroxosulphates (persulphates)
34. Nitrites; nitrates.
35. Phosphinates (hypophosphites), phosphonates (phosphites) and phosphates; polyphosphates, whether or not chemically defined.
36. Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonate containing ammonium carbamate.
37. Cyanides, cyanide oxides and complex cyanides.
38. Silicates; commercial alkali metal silicates.
39. Borates; peroxoborates (perborates).
40. Salts of oxometallic or peroxometallic acids.
41. Other salts of inorganic acids or peroxoacids (including aluminosilicates whether or not chemically defined), other than azides.
42. Colloidal precious metals; inorganic or organic compounds of precious metals, whether or not chemically defined; amalgams of precious metals.
43. Radioactive chemical elements and radioactive isotopes (including the fissile or fertile chemical elements and isotopes) and their compounds; mixtures and residues containing these products.
44. Compounds, inorganic or organic, of rare-earth metals, of yttrium or of scandium or of mixtures of these metals.
45. Hydrogen peroxide, whether or not solidified with urea.
46. Phosphides, whether or not chemically defined, excluding ferrophosphorus.
47. Carbides, whether or not chemically defined.
48. Hydrides, nitrides, azides, silicides and borides, whether or not chemically defined, other than compounds which are also carbides of heading 2849.
49. Inorganic or organic compounds of mercury, whether or not chemically defined, excluding amalgams
(Organic chemicals)
12%
1. Gibberellic acid
18%
1. Gibberellic acid All goods not specified elsewhere
2. Acyclic hydrocarbons
3. Cyclic hydrocarbons
4. Halogenated derivatives of hydrocarbons.
5. Sulphonated, nitrated or nitrosated derivatives of hydrocarbons, whether or not halogenated.
6. Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
7. Cyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
8. Phenols; phenol-alcohols.
9. Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenolalcohols.
10. Ethers, ether-alcohols, ether-phenols, etheralcohol- phenols, alcohol peroxides, ether peroxides, ketone peroxides(whether or not chemically defined), and their halogenated, sulphonated, nitrated or nitrosated derivatives.
11. Epoxides, epoxyalcohols, epoxyphenols and epoxyethers, with a three membered ring, and their halogenated, sulphonated, nitrated or nitrosated derivatives.
12. Acetals and hemiacetals, whether or not with other oxygen function, and their halogenated, sulphonated, nitrated or nitrosated derivatives.
13.  Aldehydes, whether or not withother oxygen function; cyclic polymers of aldehydes; paraformaldehyde.
14. Halogenated, sulphonated, nitrated or nitrosated derivatives of products.
15. Ketones and quinones, whether or not with other oxygen function, and their halogenated, sulphonated, nitrated or nitrosated derivatives.
16. Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitratedor nitrosated derivatives.
17. Unsaturated acyclic monocarboxylic acids, cyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives.
18. Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives.
19. Carboxylic acids with additional oxygen function andtheir anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives.
20. Phosphoric esters and their salts, including lactophosphates; their  halogenated, sulphonated, nitrated or nitrosated derivatives.
21. Esters of other inorganic acids of non-metals (excluding esters of hydrogen halides) and their salts; their halogenated, sulphonated, nitrated or nitrosated derivatives.
22. Aminefunction Compounds. 23. 2922 Oxygenfunction aminocompounds.
24. Quaternary ammonium salts andhydroxides; lecithins and other phosphoaminolipids, whether or not chemically defined.
25.  Carboxyamidefunction compounds; amide-function compounds of carbonic acid.
26. Carboxyimidefunction compounds (including saccharin and its salts) and imine-function compounds.
27. Nitrilefunction compounds.
28. Diazo-, azo- or azoxycompounds.
29. Organic derivatives of hydrazine or of hydroxylamine.
30. Compounds with other nitrogen function.
31. Organosulphur compounds.
32. Other organo-inorganic compounds.
33. Heterocyclic compounds with oxygen heteroatom (s) only.
34. Heterocyclic compounds with nitrogen heteroatom (s) only.
35. Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds.
36. Sulphonamides
37. Provitamins and vitamins, natural or reproduced by synthesis (including natural concentrates), derivatives thereof used primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent.
38. Hormones, prostaglandins, thromboxanes and leukotrienes, natural or reproduced by synthesis; derivatives and structural analogues thereof, including chain modified polypeptides, used primarily as hormones.
39. Glycosides, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives.
(Data Source – Saral GST)
Read More: GST rates for the chemical industry in India - A quick guide

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