Tax Free Goods

(All the entries of Schedule ‘B’ of the H.P. GST Act, 1968 have been rearranged in alphabetical order and entries No. 66 and 76 dealing with exemption of sales tax on sale of manufactured goods by certain industries have been taken at the end.)

Agricultural implements and parts thereof as per detail below:-

(i)Bullock Drawn:

Bund former

Cane juice boiling pan & grating

Cart

Chaff cutter

Cultivator or triphali

Ditcher,

Fertilizer drill

Harrow

Leveller or scoop

Mower

Persian wheel & bucket

Chain or washer chain

Plank or float

Planter

Plough

Reaper

Ridger

Roller

Seed drill,

Seed-cum-fertilizer drill.

Sugarcane crusher.

Thrasher or palla.

Transplanter.

Yoke.

 

(ii)Ordinary agricultural implements :

Baguri

Dibbler

Fertilizer seed broadcaster.

Flame gun

Gandasa.

Groundnut dicorticator.

Hand driven chaff cutters

Hand Hoe or Khurpa.

Hand Wheel Hoe.

Horticulture tools like budding grafting knife, secateur, pruning shear or hook, hedge shear, sprinkler, rake

Jandra

Maize Sheller.

Manure or seed screen.

Puddler.

Seed Grader.

Sickle.

Soil injector.

Spade.

Sprayer, duster and sprayer-cum- duster.

Tangli.

Tasla.

Transplanter

Wheel barrow.

Winnowing fan or winnower,

 

(iii)Power implements:

Centrifugal pump

Chaff cutter

Groundnut dictoricator

Maize sheller

Poultry feed grinder and mixture

Power sprayer or duster

Seed grader

Seed treater

Self propelled combine

Thrasher

Transplanter

Winnower

(iv)Tractor drawn agricultural implements :

Bund former

Cage wheel

Combine

Cultivator or tiller

Ditcher

Fertilizer broadcaster

Fertilizer drill

Groundnut digger shaker

Harrow

Harvester

Hoe, rotary hoe or rotovator

Leveller or scoop

Plank or float

Planter

Plough

Potato harvester or spinner

Puddler

Ridger

Reaper or mower,

Roller

Seed-cum-fertilizer drill

Seed drill

Sprayer, duster or sprayer-cum-duster.

Trailer

Transplanter

(v)Metal Store bins

Agricultural or horticultural produce and saplings of trees sold by person a member of his family grown by himself or grown on any land in which he has an interest whether as owner or usufructory mortgagee, tenant or otherwise.

Articles of handicrafts and readymade garments made out of handloom cloth by the industrial co-operatives__ when sold through the Government Emporium and the sales depots of the Punjab Weavers Apex Co-operative Society Ltd.

Articles of handicrafts prepared by the Tibetan Refugees Handicrafts-cum- Production Centre,Dalhousie, Tibetan Handicrafts Production-cum-sale Cooperative Industrial Society Limited, Mcleodganj, Dharamshala Cantt., and Tibetan Craft Community Tashi Jong Colony, Paprola, HP- when sold by such center or any of its branch office.

Artificial hearing aids and their accessories.

Artificial limbs and rehabilitation aids for the handicapped.

Baan -when sold by maker himself or by any other member of his family provided that the maker does not employ any outside labour or use power at any stage for making the Baan.

Books

Bakery goods other than bread i.e. double roti prepared without using power.

Bardana (packing material) and containers--when sold by a person who deals exclusively in goods   declared tax free u/s 7, but sells packing material and containers only as incidental to his main business.

Bee hives.

Bangles made of glass, plastic and lakh.

Bindi and kumkum

Bread (i.e. Double-Roti).

Bricks and brick bats (excluding re-fractory bricks).

Canvas cloth turpaulines and similar other products manufactured with cloth as base as are manufactured in textile mill, powerloom factories and processing factories.

Cattle feed including fodder of every type (dry or green)but excluding chilka of foodgrains,pulses or oil cakes.

Chloroquines.

Common salt.

Condoms-when sold through general trade agencies.

Countrymade Juties including Chamba chappals and sandals-when sold by the maker of such shoes himself or by any other member of his family, provided that the maker does not employ any outside labour or uses power at any stage for making the shoes.

Edible oils produced from sarson, toria and til in indigenous kohlu, whether worked by animals or human beings-when sold by the owners of such kohlus.

Eggs-except when sold in tins bottles or cartons.

Exercise & drawing books.

Electric energy.

Earthenware made by kumhars.

Fertilizers except chemical fertilizers and oil cakes.

Fish-except when sold in tins, bottles or cartons.

Flowers.

Foodgrains supplied free of cost by the Govt. of India, under the Food for Work Programme or other relief programme notified as such by the Government- exempted if declaration from the distributing Government Department is produced.

Food preparations ordinarily sold by Halwais and Dhabawalas-when prepared and sold by Halwais and Dhabawalas themselves.

Footrules, geometry box and its instruments,sketch pen, drawing colour, pencil eraser, pencil sharpener and ink tablets of the type usually used in schools.

Fresh fruits including tender/ watery coconut.

Fuel oil/heavy stock used as feed stock in fertilizer production.

Geomatery box and its instruments.

Graphite lead pencils.

Gajjaks.

Golies.

Goods sold to Indian Red Cross Society and St.John Ambulance Society.

Goods sold to serving military personnel and ex- servicemen by the C.S.D. canteens.

Hand spun yarn-when sold by one who deals in hand spun yarn exclusively.

Hops (Humulus luqulus)flowers( fresh or dried).

Hurricane Lantern ,Wick Stoves and their parts

Judicial and Non-judicial stamps, entertainment duty stamps, passangers and goods tax stamps and standard water marked petition paper.

Kikar bark.

Kuth.

Leather cloth and inferior or imitation leather cloth ordinarily used in book-binding (ruberised), tissue or synthetic water proof fabrics whether single- textured or double-textured; andbook binding cotton fabrics.

Live stock.

Lottery Tickets.

Maize gifted by the Govt. of India and sold for human consumption in Tribal and draught affected areas, poultry and animal feed sectors-exempted if declaration from the concerned distributing govt. department is produced.

Mango stones and Mango kernals.

Meat-except when sold in tins, bottles or cartons.

Milk-except condensed and dried milk

News print sold to small and medium news papers having circulation upto 15000 and 50000 copies respectively per issue-when circulation is certified by a charatered accountant or by a professional and reputed accounts body or institution (If circulation is up to 2000 per issue, certificate of District Magistrate may be submitted.)

Non-conventional energy devices:

Agricultural and municipal waste conversion devices producing energy.

Biogas engines, biogas plants, gas holder and chulla (Burner)

Electrically operated vehicles including battery powered or fuelcell powered vehicle.

Equipment for utilizing ocean waves and thermal energy in the oceans.

Flat plate solar collectors, Black continuously Plated Solar Selective Coating Sheets (in cut lengths or in coils) and fins and tubes.

Solar air conditioning systems.

Solar collectors-concentrating and pipe type

Solar cold storage systems.

Solar cookers.

Solar crop driers and systems.

Solar energy equipments.

Solar photovoltaic modules and panels for water pumping and other applications.

Solar power generating systems.

Solar pumps based on solar thermal and solar photovoltaic conversion.

Solar refrigerations.

Solar still and desalimination systems.

Solar water heaters and systems.

Special devices including electric generators , pumps running on wind energy.

Wind mills and any special designed devices which run on wind mills.

Oral contraceptive pills-Mala i.e. Mala-N and Mala-D, Ecroj, Pearl, Moti, Suvidha and Apsara.

Pan

Paper Bags

Periodicals

Photographs including X-Ray photographs- when sold by photographers and radiologists preparing them.

Poultry feed, that is to say,a mixture of proteins, salts and minerals, vitamins, antibiotics and coccidiostats, whether such mixture contains carbo-hydrates or not.

Pre-recorded Cassettes containing "Azadi-ki-Kahani"(Story Of Freedom) and the Cassettes of the historic Utterances of Mahatma Gandhi and Jawahar Lal Nehru in their own voices which contains National Anthem and Patriotic Songs in various Regional languages.

Raw wool

Reori, Patashas, Gajjaks, Misri(candy or cooza), Golies, Boora, Makhanas, Marunda and Phulian.

Sera and vaccines manufactured by Himachal Pradesh Central Research Institute, Kasauli(H.P.)

Spinning wheel(Charkha) and its parts.

Seeds and saplings

Sugar

Straw covers-when sold by manufacturers themselves or through their union.

Textiles-all varieties of cotton, woollen or silken textiles including rayon, artificial silk or nylon whether manufactured by handloom or powerloom or otherwise except carpets,druggets,woolen durees and cotton floor durees, including such textiles on which knitting and embroidery work has been done.

Takhties used by students in schools

Tobacoo whether cured,uncured or manufactured and all its products including biris, cigarettes, cigars

Vegetables including green chillies-except when sold in tins, bottles or cartons

Water(aquapura)-Except when sold in containers

Wheat-bran(i.e. Chokar)

Wooden Fruit Packing Cases

Writing chalks and crayons

Writing Slates and Slate pencils

“66.  Sale of electronic good manufactured by (a) existing Electronic Industrial Units, and (b) new Electronic Industrial Units situated in Himachal Pradesh including Computer Software and Electronic Assembly Units where value addition in assembling (a) by an existing Electronic Assembly Unit is 25% or more and, (b) by a new Electronic Assembly Unit is more than 14% but excluding:

(i)            T.V. Assembly units;

(ii)          Radio Assembly units;

(iii)         V.C.R./V.C.P. Assembly units; and

(iv)        Other units where value addition in assembling (a) by existing Electronic Assembly unit is less than 25% and (b) by a new Electronic Assembly units is 14% or less.

         (1)  In respect of the existing Electronic Industrial Units and existing Electronic Assembly Units, the exemption shall be granted only when:-

(i)  the Units (other than the existing Electronic Assembly Units) come into production between 1-4-1985 and 30-9-1996 and the existing Electronic Assembly units where value addition in assembling is 25% or more come into production between 31-7-1992 and 30-9-1996;

(ii)  the Units file by 30th April every year with the Assessing Authority concerned a certificate in form R.M. II prescribed by the Himachal Pradesh Government, Excise and Taxation Department Notification No.1-12/73-E&T-III, dated the 7th February, 1992, published in Rajpatra Himachal Pradesh (Extra-Ordinary) on 12-2-1992, obtained from the authority specified therein;

(iii)  exemption will be available for ten years from the date, the units come into production;

(iv)  the units comply with all the provisions of the Act, the rules framed and also the notifications issued thereunder; and

(v)  the unit was registered and continues to be so registered as a dealer under the Himachal Pradesh General Sales Tax Act, 1968:

               Provided that subject to compliance of sub-condition No.(ii), (iv) and (v) of condition No.(1) above, the Electronic Assembly Units, except the following which came into commercial production between the period from 1-4-1991 to 30-9-1996 and where the value addition in assembling is more than the 14% shall also be eligible for the grant of exemption from the payment of sales tax for the period commencing from the date of this notification and ending on the 31st day of March, 2001:-

(i)     T.V. Assembly units;

(ii)     Radio Assembly units;

(iii)    V.C.R./V.C.P. Assembly units; and

(iv)     Other units where value addition in assembling is 14% or less.

        (2)  In respect of new Electronic Industrial Units and Electronic Assembly Units where value addition in assembling is more than 14% the exemption shall be granted only when:-

        (i)  the units came into commercial production between 1-10-96 and 31-3-1999.

        (ii) the units file by 30th April every year with the Assessing Authority concerned, a certificate in Form R.M.II prescribed by the Himachal Pradesh Government, Excise and Taxation Department Notification No.1-12/73-E&T-III dated the 7th February, 1992, obtained from the authority specified therein;

        (iii) the unit is registered as a dealer under the Himachal Pradesh General Sales Tax Act, 1968;

        (iv)  the unit comply with all the provisions of the Act and the rules framed and also the notifications issued thereunder; and

        (v)  the exemption will be available:-

(a)    to units located in category ‘A’ and ‘B’ ‘Industrial Blocks’ for ten years from the date the unit comes into commercial production; and

(b)    to units (including Pioneer Units and Prestigious Units) located in category ‘G’ ‘Industrial Block’ for five years from the date the units comes into commercial production; and

(vi)  no exemption shall be available to new Electronic Industrial Units manufacturing goods listed in ‘Negative List’.

        Explanation.-In this item the expressions “Pioneer industrial units”, “Prestigious Industrial units”, ‘negative list’ and ‘industrial block’ shall have the same meanings as assigned to them in Government of Himachal Pradesh, Excise and Taxation Department Notification No.EXN-F(13)1/96-(iii) dated 27-1-1997, and EXN-F(13)1/96(vi) dated 27-1-1997”  and EXN-F(13)1/96(vi) dated 27-1-1997.

 

 

 

 

“76.  Sales of goods manufacture by following (a) existing industrial units, and (b) new industrial units:-

 

(a)  existing industrial units:

(i)   Agriculture-Horticulture produce based industries except Breweries, Distilleries, non-fruit based wineries and bottling plants (both for Country Liquor and Indian Made Foreign Liquor);

 

(ii)  Food products and mineral water bottling industry other than those specified at Sl. Nos. 1, 2, 3, 5, 6, 7, and 24 of the negative list notified vide this department Notification No.1-12/73-E&T-III dated 25-9-92 published in Rajpatra (Extra-ordinary_ on 1-10-92.

 

(iii)  Herbal produce based Industries and Aromatic Industries;

 

(iv)  Wool based industry (including Angora Wool);

 

(v)   Sericulture;

 

 

(vi)  Garments and Knitwear manufacturing industry; and

 

(vii) Projects with investment of more than Rs.300 crores and those with 100% export oriented industries.

 

(b)  New Industrial units:

 

(i) Agriculture-Horticulture produce based industries except Breweries, Distilleries, non-fruit based wineries and Bottling Plants (both for Country Liquor and Indian Made Foreign Liquor):

 

(ii)  Food products and mineral water bottling industry other than those specified at Sl.No.1, 3 and 16 of the negative list notified vide this department’s Notification No.1-12/73-E&T-III, dated 25-9-92,published in Rajpatra, Himachal Pradesh (Extra-Ordinary) on 1-10-92 and as amended vide Government of Himachal Pradesh Excise and Taxation Department Notification No.EXN-F(13)1/96(vi), dated 27-1-97.

(iii)  Herbal produce based industries and Aromatic industries;

(iv) Wood and industry (including Angora wool);

(v)  Sericulture;

(vi) Garments and knitwear manufacturing industry;

(vii) 100% Export oriented industries; and

(viii)Projects with fixed capital investment of more than Rs.300 crores going into commercial production on or after 1-4-95 and which are registered with the Empowered Committee after 31-3-95 except the industries specified in the negative list notified vide notification No.1-12/73-E&T-III, dated 25-9-92, published in Rajpatra Himachal Pradesh (Extra-Ordinary) on 1-10-92 and as amended vide Government of Himachal Pradesh, Excise and Taxation Department notification No.EXN-F(13)/96(vi) dated 27-1-97.

 

 

 

(1)  In respect of the existing industrial units, the exemption shall be granted only when:-

 

 

(a)  the units file by 30th April every year with the Assessing Authority concerned, a certificate in Form R.M.II as prescribed by the Himachal Pradesh Government Excise and Taxation Departrment Notification No.1-12/73-E&T-III dated the 7th February, 1992 issued by the authority specified therein;

 

(b)  the exemption will be available for a period of 10 years from the date of commencement of production by such industrial unit,: and

 

©  the units comply with all provisions of the Act the rules framed and also the notifications issued thereunder.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        (2)  In respect of new industrial units, the exemption shall be granted only when:-

 

(i)  the units file by 30th April every year with the Assessing Authority concerned, a certificate in Form R.M.II, as prescribed by the Himachal Pradesh Government, Excise and Taxation Department Notification No.1-12/73-E&T-III, dated the 7th February, 1992, published in Rajpatra Himachal Pradesh (Extra-Ordinary) on 12-2-1992, issued by the authority specified therein;

 

(ii)  the exemption will be available for a period of ten years from the date of commencement of commercial production by such industrial units located in ‘A’, and ‘B’ category  of Industrial Block only including the industrial units which fall in the negative list (other than those located in ‘C’ category of Industrial Block) notified vide Himachal Pradesh Government, Excise and Taxation Department Notification No.1-12/73-E&T-III, dated 25-9-92 published in Rajpatra, Himachal Pradesh (Extra-Ordinary) on 1-10-92 and as amended vide Notification No.EXN-F(13)1/96 (vi), dated 27-1-97. In case of Fruit, Vegetable, Maize and other grain based industrial unit or a combination of these (i.e. Agriculture-Horticulture based industries) the exemption from the payment of sales tax will be available for a period of twelve years, ten years and ten years in respect of such industrial units located in ‘A’, ‘B’ and ‘C’ category of industrial block respectively; and

 

(iii)  units comply with all the provisions of the Act, the rules framed and also the notifications issued thereunder.

 

Explanation.-(1) In this item,-

 

(i)  “existing industrial unit” means industrial unit which commences production between the period from 1-4-91 to 30-9-96 and which was registered and continues to be so registered as a dealer under the Himachal Pradesh General Sales Tax Act, 1968 and  will include any existing unit which is eligible to get fresh registration as per the guidelines issued by the Development  Commissioner, Small Scale Industries, Government of India, from time to time, but will not include an industrial unit, small medium or large, which is formed as a result of re-establishment, mere change of ownership, change in the constitution, restructuring or revival of an existing industrial unit.

 

(ii)  “new industrial unit” means an industrial unit which commences commercial production between 1-10-96 and 31-3-99 and is registered as a dealer under the Himachal Pradesh General Sales Tax Act, 1968.

 

(2)  For the purposes of sub-item (vii) the expression 100% export oriented industries” means the Industries defined as such by the Government of India from time to time.

 

(3)  In this item the expressions “Industrial Block”, “negative list” and “Fixed Capital investment” shall have the same meanings as defined vide Himachal Pradesh Government, Excise and Taxation Department Notification No.1-12/73-E&T-III, dated 25-9-92, published in Rajpatra Himachal Pradesh (Extra-Ordinary) on 1-10-92, and as amended vide Notification No.EXN-F(13)1/96 (vi) dated 27-1-1997.”