GST Circular 79/2022 for Rate on Cattle Feed, EVs, Mangoes

The Central Board of Indirect Taxes and Customs circulated the clarification on the GST imposed on multiple goods and services.

The indirect tax body via several GST circulars has addressed the problems towards issues around liquidated damages, penalty on cheque bouncing, delayed payment charges, recovery from employees for bond payment/forfeiture of salary, and others.

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It mentioned that electric vehicles without batteries will draw 5% GST. Mangoes except fresh, sliced, and dried would invite 12% GST.

The same would be articulated that the treated sewage water would not be purified and thus no levy will be imposed.

Cattle feed will get taxed at GST 5%, for the former duration in which the exemption would get claimed but no move has been initiated by the council because of interpretational problems.

“With the intent to avoid litigations in some of the interpretational issues, the circular also clarifies that no actions should be taken by the department for the past period (viz., sale of ice cream by ice cream parlour, GST on churi, Khandi, and like items used as cattle feed, etc). The proactive step taken by the CBIC by the issuance of present clarifications are likely to be beneficial to industries across various sectors,” a tax expert mentioned.

In various cases among these, the circular draws assurity of taxes and assists in removing the litigation between the council and the assessee.