QUESTION
What will be the HSN code for wick for diya? If we consider HSN 59080010, rate of tax is 12%. However, can we consider that as the wick of diya i.e. divet used as puja samagri, it is exempt form tax?
ANSWER
Facts of the case:
Wicks for diya are being supplied under the HSN code 59080010.
Law Applicable:
1. Entry no. 165 of schedule II
of notification 1/2017 Rate CGST levies CGST @ 6% on following;
"Notification No.1/2017-Central Tax (Rate)
|
165. |
5908 |
Textile wicks, woven, plaited or knitted , for lamps, stoves, lighters, candles or the like; incandescent gas mantles and tubular knitted gas mantle fabric therefor, whether or not impregnated |
"
2. Entry no. 148 of notification
2/2017 Rate exempts the following from the whole tax;
"Notification No.2/2017-Central Tax (Rate)
|
148. |
Any chapter |
Puja samagri namely,- (i) Rudraksha, rudraksha mala, tulsi kanthi mala, panchgavya (mixture of cowdung, desi ghee, milk and curd); (ii) Sacred thread (commonly known as yagnopavit); (iii) Wooden khadau; (iv) Panchamrit, (v) Vibhuti (vi) Unbranded honey (vii) Wick for diya. (viii) Roli (ix) Kalava (Raksha sutra) (x) Chandan tika |
"
Interpretation:
HSN code covers 59080010 covers wicks of textile which can be for lamps, stoves, lighters etc. These are taxable @ 12% GST. However, if the same is used as a puja samagri then exemption from the whole of tax can be claimed vide entry no. 148 of notification 2/2017 Rate CGST. Whether or not wicks for diya are used as puja samagri is a question of fact and would differ on a case to case basis. If your product is a puja samagri and your wish to claim this exemption then you may follow below mentioned points only to solidify your fact (these are not prescribed by law, these are merely a trade practice)
1. Labeling the packaged material
"Only for puja use"
2. Naming the product as such e.g. "Puja Bati", "Puja Wicks" etc.
3. Letter of purchase order from the retail buyer placing an order for "wick
for puja"
Such practices would go on to prove that wicks supplied by you are indeed meant
to be used as puja items hence eligible for exemption.
Conclusion:
Exemption can be claimed since wicks are indeed meant to be supplied as puja items. Certain steps may be followed to make sure that the fact that these are puja items is evident from the package and trade practice. (Reply dt. 08/02/2022)