2026-VIL-31-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR – Applicable GST Rates on Tobacco Leaves - Applicant seeking Advance Ruling on the applicable GST rates on various activities relating to the sale of tobacco leaves - Applicable rate of GST on tobacco leaves sold to other traders by the applicant as they are purchased from farmers after sun curing in the fields, without undertaking any processing except the storage or stocking of the leaves – HELD – The tobacco leaves do not lose their character of leaves as such even after undergoing the process of curing. It is during and after the process of stemming or stripping the tobacco leaf loses its character of leaf as such - The tobacco leaves purchased from farmers after sun curing in the fields, without any further processing except storage or stocking, are covered under Tariff item no. 240110 and Entry no. 162 of Schedule I of the GST Rate Notification. Accordingly, the supply of such tobacco leaves would be taxed at 5% GST – Ordered accordingly - Issue 2: Applicable rate of GST if the applicant segregates the tobacco into grades depending on their size (width), colour/shade, length, texture of the leaf etc. and sells such graded tobacco leaf – HELD - Even after being graded based on various physical parameters, the tobacco leaves remain as "tobacco leaves as such" and are covered under Tariff item no. 240110 and Entry no. 162 of Schedule I. Accordingly, the supply of such graded tobacco leaves would also be taxed at 5% GST - Issue 3: What will be the applicable rate of GST if the tobacco leaves are sold to other traders after removing the butts to avoid damage to leaves during transportation – HELD - The removal of the tough, stem-like edge or butt of the tobacco leaf, leaving only the pliable lamina, does not cause the tobacco leaf to lose its character as a "tobacco leaf". Therefore, such tobacco leaves, after butting, are also covered under Tariff item no. 240110 and Entry no. 162 of Schedule I, and would be taxed at 5% GST.
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