Coconut, dried or fresh, is exempted under GST. However, copra, which is dried white part of coconut attracts 5% GST and covered under HSN 1203. Copra is normally used for oil production. However, if copra is sold for human consumption, will it still be levied 5% GST?
Case Details : GST on Khobra/Copra
Case Related To : EMS COCOS
Declared By : Tamil Nadu– Advance ruling on 30-11-2022
What Happened Exactly :
- The applicant is engaged in the activities of Manufacturing and Trading of Coconut, Copra and Coconut shells.
- The applicant seeks advance ruling as to GST classification of copra/dried coconuts (shelled or peeled) used for human consumption.
- Applicant seeks clarity whether dried coconuts (copra) meant for human consumption merit classification in Chapter Heading 0801 thereby attracting ‘Nil’ rate or in Chapter Heading 1203 attracting 5% GST.
Court's Decision :
- Applicant takes the copra cuts into half, sun dries and segregates manually based on the round shape of copra, free of dirt/dust and send it as edible copra and the rest of copra which are irregularly shaped, dusty are sent to oil milling units.
- CBIC Circular 163/19/2021-GST dated 6th October 2021 states that Copra is classified under heading 1203 irrespective of use – A dried coconut for human consumption can also be used for milling purpose, therefore the basis of determination of GST rate on the basis of end use is not appropriate in terms of classification of the product.
- The impugned goods of the applicant is only Copra and the same shall be classified under Heading 1203 thereby attracting GST rate of 5%.