Quick Lime and Hydrated Lime Attract 5% GST: AAR

Quick Lime and Hydrated Lime Attract 5% GST: AAR

The applicant, Kaycee Industrial Chemicals Private Limited, manufactures Quick Lime and Hydrated Lime. As per the applicant, they purchase high-purity limestone from Oman through importers and their agents. The applicant treats Quick Lime and Hydrated Lime of less than 98% purity, which fall under heading 2522.

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The applicant sought an advance ruling from the Tamil Nadu Authority for Advance Ruling (AAR) for the following questions:

“1. We are collecting 5% GST on Quick Lime and Hydrated Lime having purity less than 98%. But there is lot of confusion regarding the GST rate whether GST rate is 5% or 18%.

2. GST rate of Quick Lime and Hydrated Lime having less than 98% purity – AAR Ruling required.”

The Tamil Nadu AAR clarified that both Quick Lime and Hydrated Lime, falling under Chapter 2522, attract a GST rate of 5% (2.5% CGST and 2.5% SGST) as per Notification 1/2017-Central Tax (Rate).