Entry 225A inserted vide notification no. 41/2017 dated 14th November 2017 in Schedule I provides that “Fly ash bricks or fly ash aggregate with 90 per cent or more fly ash content” is taxable at the rate of 5%. The question arises that whether by the use of word “or” between Fly Ash Bricks and Fly ash Aggregate; the condition “with 90 per cent or more fly ash content” is relevant for only fly ash aggregates or for both Fly Ash Bricks and fly ash aggregate.
The entry was inserted in the Schedule w.e.f. 15th November 2017 and the minutes of the GST Council suggested as follows:
“19.2. The Hon’ble Minister from Odisha stated that at Sr. No.40 of Annexure I1 of the Agenda Notes to agenda item 6(i), the rate of tax on fly ash bricks was rightly proposed to be reduced from 12% to 5%. He suggested that fly ash aggregates, which were chip like products and consumed almost 90% of fly ash, should also be covered in this entry and should be charged to tax at the rate of 5%. Shri Tuhin Kanta Pandey, Principal Secretary (Finance), Odisha, suggested that fly ash aggregates should be classified under Chapter Heading 68 15. The Secretary suggested that rate of tax on fly ash aggregate with 90% or more fly ash content, falling under Chapter Heading 6815 may be reduced to 5%. The Council agreed to the suggestion.”
Therefore, on going through the GST Council Minutes, it seems that the intention was to tax fly ash bricks irrespective of the content of fly ash at the rate of 5% and fly ash aggregate at the rate of 5% if the fly ash content was more than 90%.