Ministry of Finance vide Circular No. 46/20/2018- GST dated- June 06, 2018 re-examines the issue of classification of Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips, and the GST rates applicable thereon.
It Clarifies that RECs and PSLCs and other similar documents are classifiable under Heading 4907 and attract 12% GST under Notification No. 1/2017-Central Tax (Rate).
However, Duty Credit Scrips under MEIS and SEIS would continue to attract Nil GST under Sr. No. 122A of Notification No. 2/2017-Central Tax (Rate). It further Explains that GST rate of 18% under residual entry at Sr. No. 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate) applies only to those goods which are not covered under any other entries of Schedules I, II, IV, V, or VI thereof.
Accordingly, in modification of S.No. 3 of Circular No. 34/8/2018- GST dated 01.03.2018, it is hereby clarified that Renewable Energy Certificates (RECs) and Priority Sector Lending Certificates (PSLCs) and other similar documents are classifiable under heading 4907 and attract 12% GST.
Read More at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_No.46.pdf