GST clarified for toys, sublimation paper and used-vehicle expenses
Goods guidance distinguishes vehicle purchase credit from operating inputs.
Published by Mohit R Gupta & AssociatesChartered Accountants · Krishna Nagar, Delhi
CBIC Circular 265/11/2026-GST, dated 28 October 2026, clarifies classification and credit issues across several goods categories.
Sublimation paper falls under heading 4809 with 18% GST. The toy entries under heading 9503 cover the wider category, rather than only the wheeled examples named in the rate notification: non-electronic toys attract 5%, while electronic toys attract 18%.
For old and used vehicles supplied under the specified margin-scheme notifications, the restriction on input tax credit concerns tax paid on the purchased second-hand vehicle. Credit on other eligible business inputs and services, such as repairs, rent, technology and advertising, remains subject to ordinary statutory conditions.
Seaweed-extract biostimulants registered under Schedule VI of the Fertiliser Control Order are classified under heading 3101. Product registration and composition therefore need examination.
The document describes past-period regularisation for sublimation paper and biostimulants as a Council recommendation. Businesses should verify the applicable implementing instrument before treating historical disputes as settled.
Review product masters and invoices, and keep vehicle purchase credit separate from operating-expense credit.
WHAT TO DO NEXT
Practical action
Check applicability and supporting records.
This summary is general information. Read the original publication and check subsequent amendments before acting. For advice on your specific facts, consult our office.
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