‘A product cannot be taxed under two different schedules’

Notwithstanding the decision of the Goods and Services Tax (GST) Council rationalising the GST on fly ash bricks and blocks at concessional GST rate of 5%, the Gazette notification placing the product under two different Schedules and tax slabs has created confusion, according to the Visakhapatnam-based Institute for Solid Waste Research and Ecological Balance (INSWAREB).

The GST Council at its 47 ^th meeting had decided that all fly ash bricks attract the same concessional rate, irrespective of the ash content in them. It was clarified that the concessional GST rate is 5%.

However, while translating the above decision of the Council into notification, the Gazette incidentally ignored and caused confusion by retaining fly ash bricks and blocks in Schedule II as well as in Schedule III. A product cannot be taxed under two different schedules, say N. Bhanumathi Das and N. Kalidas, the Founder-Directors of INSWAREB.

While thanking the Prime Minister and the Finance Minister for acting positively on their representations seeking rationalisation of the GST on fly ash bricks and blocks, Mr. Kalidas wrote to the Central Board of Indirect Taxes and Customs (CBIC) Chairman on the confusion being caused by the Gazette notification seeking redrafting of the notification.

It should clarify that “Fly ash bricks, fly ash aggregates and fly ash blocks” are omitted from Notification n.01/2022 and 2/2022, dated March 31, 2022 and restored to Schedule I with all applicable terms of composition scheme and ITC (Input Tax Credit). Thus the notification no. 15/2022 has become redundant and hence withdrawn.