Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued important clarifications on the classification and GST treatment of four categories of goods, addressing ambiguities that have led to disputes and inconsistent tax treatment. Through Circular No. 265/11/2026-GST dated October 28, 2026, the Ministry of Finance has clarified the applicable GST treatment of sublimation paper, toys, old and used motor vehicles supplied under the margin scheme, and seaweed extract-based bio-stimulants
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
Sublimation paper is classified under heading 4809 and attracts a GST rate of 18%.
The clarification confirms that GST notification entries for toys under heading 9503 are not limited to specific examples listed, covering other toys like dolls' carriages and puzzles, with rates of 5% or 18% depending on whether they are electronic.
Yes, businesses selling used cars under the margin scheme can claim ITC on eligible inputs and services used in their business, provided they meet the conditions of the CGST Act, 2017. The restriction only applies to the ITC on the used vehicles themselves.
Seaweed extract-based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985, are classified under heading 3101.
The circular aims to ensure uniform implementation of GST provisions, resolve classification-related issues, and address ambiguities that have led to disputes and inconsistent tax treatment for businesses.
CAclubindia
