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2021 (7) TMI 400 - AAR - GSTClassification of goods - Gomaya Samidha - applicability of S. No. 108 of N/N. 2/2017 Central Tax Rate dated 28th June, 2017 or S.No. 113 of N/N. 2/2017 - Central Tax Rate dated 28th June, 2017 - HELD THAT - Sub-heading 31010099 may cover organic manure. Manures are plant and animal wastes that are used as sources of plant nutrients. They release nutrients after their decomposition. Manures are the organic materials derived from animal, human and plant residues which contain plant nutrients in complex organic forms. Naturally occurring or synthetic chemicals containing plant nutrients are called fertilizers - cowdung mixed with herbs being organic manure is more suitably covered under sub-heading no. 31010099 meant for 'Others' of the said chapter heading 3101. 11. Whether Gomaya Samidha is exempt from levy of GST in terms of S. No. 108 of N/N. 2/2017 - Central Tax Rate dated 28th June, 2017 or in the alternative in terms of S.No. 113 of N/N. 2/2017 - Central Tax Rate dated 28th June, 2017? - HELD THAT - The mixture of cowdung herbs is merely not a cowdung but an Organic Manure by its texture. Since it is an organic manure having natural nutrients hence can be used for various purpose and not only as fertilizer. Therefore Gomaya Samidha is not covered under Sl.No.108 of chapter heading 3101 of Exemption Notification no.2/2017-Central Tax(Rate) dated 28.06.2017 being a branded item - The subject product i.e. Gomaya Samidha is made from cowdung herbs which are definitely not a kind of wood, hence also not exempt under si.no.113 of the aforesaid notification. Whether the Subject Goods i.e. Gomaya Samidha is leviable to GST @5% in terms of S. No. 182 of Schedule I to Notification No.1/2017 - Central Tax Rate dated 28th June, 2017? - HELD THAT - As per description of S.No.182, it is observed that this entry covers all the goods of chapter heading no.3101 i.e. animal or vegetable fertilisers or organic fertilisers put up in unit containers and bearing a brand name - Gomaya Samidha is nothing but organic manure or natural organic fertilizer as it has all the natural nutrients for agriculture. The applicant also intends to supply it in unit containers with brand name Gomaya Samidha - Patanjali Ayurved ka utpad . Therefore, aforesaid entry no. 182 is more suitable to cover the subject goods and accordingly liable to be taxed under this entry. Whether the Subject Goods i.e. 'Gomaya Samidha' is leviable GST @5% in terms of S. No. 263A of Schedule I to N/N. 1/2017-Central Tax Rate dated 28th June, 2017? - HELD THAT - The applicant is separately supplying their two products viz. Patanjali Astha Hawan Samagri Patanjali Divya Hawan Samagri where no brand name is mentioned as these products are being supplied in the name of Hawan Samagri as is commonly known in the trade which any other manufacturer can supply. But the applicant has not described Gomaya Samidha as Hawan Samagri except that they have printed a picture of two saints like persons performing Yajna just to give the impression that it is for Hawan or Yajna purpose. Further, in common parlance, cowdung is known as organic fertilizer and not Hawan Samgri. Ssince cowdung is a waste of animal and understood as manure in trade by the dealer and consumer as well., hence supplying it in a unit container does not make it Hawan Samgri. Technically cowdung is animal waste and in ordinary meaning it is known as manure in common parlance. If the applicant intends to supply cowdung as Hawan Samagri even then it does not become Hawan Samagri. For the purpose of Hawan or Yajna, public at large will definitely search for only Hawan Samagri and not cowdung - Gomaya Samidha, Patanjali Ayurved ka Utpad is not leviable to GST @5% in terms of S. No. 263 A of Schedule I to Notification No. 1/2017 Central Tax (Rate) dated 28th June, 2017 as the same is not covered under this entry. Thus, Gomaya Samidha - Patanjali Ayurved ka Utpad is leviable to GST @5% in terms of S. No. 182 of Schedule 1 to Notification No. 1/2017 - Central Tax (Rate) dated 28th June, 2017 as the same is covered under this entry.
Issues Involved:
1. Classification (HSN Code) for 'Gomaya Samidha'. 2. Exemption from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate. 3. Applicability of GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate. 4. Applicability of GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate. Detailed Analysis: 1. Classification (HSN Code) for 'Gomaya Samidha': The applicant described 'Gomaya Samidha' as a mixture of 95% cowdung and 5% herbs. The product is intended for use in performing 'hawan' (Yajna). The Authority concluded that the product is not purely cowdung due to the addition of herbs, thus changing its characteristics. The product is classified under Chapter Heading 3101, specifically under sub-heading 31010099, which covers organic manure. The Authority stated, "Cowdung is used as organic fertilizer for agriculture. If 5% herbs is mixed with it even then it does not lose its characteristics of being an organic manure." 2. Exemption from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate: The Authority examined whether 'Gomaya Samidha' qualifies for GST exemption under S. No. 108 or S. No. 113: - S. No. 108: The product must be unbranded to qualify for exemption. The Authority determined that 'Gomaya Samidha' is branded as "Patanjali Ayurved ka utpad," making it ineligible for exemption under this entry. - S. No. 113: This entry covers "Firewood or fuel wood." The Authority found that 'Gomaya Samidha,' made from cowdung and herbs, does not qualify as firewood or fuel wood, stating, "Cowdung will always remain cowdung irrespective of the fact that in what form it is supplied." 3. Applicability of GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate: The Authority examined whether 'Gomaya Samidha' falls under S. No. 182, which covers "All goods i.e. animal or vegetable fertilisers or organic fertilisers put in unit containers and bearing a brand name." The Authority concluded that 'Gomaya Samidha' fits this description, as it is an organic manure sold in unit containers with a brand name. Thus, it is leviable to GST at 5%. 4. Applicability of GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate: The Authority examined whether 'Gomaya Samidha' qualifies as "Hawan Samagri" under S. No. 263A. The Authority found that 'Gomaya Samidha' is not recognized as 'Hawan Samagri' in common parlance or trade. The product is described as cowdung mixed with herbs, not a complete 'Hawan Samagri.' The Authority stated, "Cowdung may be a part of Hawan Samagri but it itself is neither a complete Hawan Samagri nor it is recognised like that." Ruling: 1. 'Gomaya Samidha - Patanjali Ayurved ka Utpad' is classified as organic manure under Chapter Heading 3101. 2. It is not exempt from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate. 3. It is leviable to GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate. 4. It is not leviable to GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate.
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