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2023 (11) TMI 765 - AAR - GSTClassification of goods - HSN Code - rate of tax - Urban Roots - Bio kavach - Immunity Booster, Avinja 7 - to be classified under HSN Code 30039011 or HSN Code 31010092? - HELD THAT - The description of the product by the applicant does not indicate any cure therefore will does not fall under chapter 30 and hence will not attract a lower rate of tax - Further immunity boosters are not specified either in schedule I or schedule II as seen from the above table hence this is a commodity which is not specified in Schedule I, II, IV, V or VI of the Notification No. 01/2017 dt. 28.06.2017 and therefore would fall in residuary entry at Serial No. 453 of Schedule III and attract the tax at the rate of 9% CGST 9% SGST each. The questions raised by the applicant are clarified as below 1. HSN Code of Urban Roots and its Rate of tax - Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST 9% SGST. 2. HSN Code of -Bio kavach and its Rate of tax - Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST 9% SGST. 3. HSN Code of Immunity Booster - Avinja 7 and its Rate of tax - Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST 9% SGST.
Issues Involved:
1. HSN Code and Rate of Tax for Urban Roots. 2. HSN Code and Rate of Tax for Bio Kavach. 3. HSN Code and Rate of Tax for Immunity Booster - Avinja 7. Summary: Issue 1: HSN Code and Rate of Tax for Urban Roots The applicant, M/s. Avinja Biotechnologies Private Limited, sought clarification on the classification of their product Urban Roots, a bio-fertilizer. They proposed two possible HSN codes: 30039011 (GST rate 12%) or 31010092 (GST rate 5%). The Authority for Advance Ruling (AAR) observed that bio-fertilizers are not specifically mentioned in Notification 1/2017. Referring to The Fertiliser (Control) Order 1985, the AAR concluded that Urban Roots does not qualify under HSN 31010092 as it is not an organic fertilizer. Consequently, it falls under the residuary entry at Serial No. 453 of Schedule III, attracting a tax rate of 9% CGST & 9% SGST. Issue 2: HSN Code and Rate of Tax for Bio Kavach Similarly, for Bio Kavach, another bio-fertilizer produced by the applicant, the AAR reviewed the proposed HSN codes: 30039011 (GST rate 12%) or 31010092 (GST rate 5%). Given the absence of a specific entry for bio-fertilizers in Notification 1/2017 and the definitions in The Fertiliser (Control) Order 1985, Bio Kavach was also classified under the residuary entry at Serial No. 453 of Schedule III, with a tax rate of 9% CGST & 9% SGST. Issue 3: HSN Code and Rate of Tax for Immunity Booster - Avinja 7 For the Immunity Booster - Avinja 7, the applicant proposed classification under HSN codes 220299 (GST rate 18%) or 30039011 (GST rate 12%). The AAR referred to various judicial precedents to determine whether the product qualifies as a medicament or a cosmetic. The AAR concluded that the product did not indicate any curative properties and thus does not fall under Chapter 30. Consequently, it was classified under the residuary entry at Serial No. 453 of Schedule III, attracting a tax rate of 9% CGST & 9% SGST. Rulings: 1. Urban Roots: Classified under Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax: 9% CGST & 9% SGST. 2. Bio Kavach: Classified under Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax: 9% CGST & 9% SGST. 3. Immunity Booster - Avinja 7: Classified under Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax: 9% CGST & 9% SGST.
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