Usage Of Chemicals As Raw Materials Doesn't Detract From Categorisation As Chemicals; Must Be Taxed At 8%: Andhra Pradesh High Court

The Andhra Pradesh High Court ruled that the usage of chemicals as raw materials does not change their categorization as chemicals, which should be taxed at 8%. The case involved dealers of Sodium Bicarbonate and Magnesium Sulphate, who were assessed under the Andhra Pradesh Goods and Services Tax Act. The Revisional Authority had imposed a higher tax rate of 12%, arguing that the chemicals were used as raw materials. The court found that the chemicals should be taxed at 8% as per G.O.Ms.No.189, which applies to all chemicals not listed under a specific category. This decision clarifies the tax treatment of chemicals used as raw materials and reinforces the principle that their usage does not alter their tax categorization.