Dried tobacco leaves after curing process were unmanufactured tobacco leaves; taxable at rate of 28% GST

Categories: Advance Ruling
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Assessee purchased ‘dried tobacco leaves’ from registered dealer, who in turn purchased such leaves from Agriculturist/Farmers. after cleaning and removal of unwanted particles (Bhusa, Dust, etc.), assessee sold dried tobacco leaves in wholesale market.

Whether dried tobacco leaves which had undergone process of curing were unmanufactured tobacco covered under Tariff Item No. 2401/Serial No. 13 of Schedule IV of Notification No. 1/2017 – Central Tax (Rate), dated 26-6-2017 and would be taxable at rate of 14 per cent (CGST) + 14 per cent (SGST) or 28 per cent (IGST) Held, yes 

Citation: [2018] 94 taxmann.com 36 (AAR – New Delhi)