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TMI Blog2020 (6) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... . MEENA AND HEMANT JAIN MEMBER Present for the applicant: Sh. Pardeep Jain (Authorised Representative) Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt application for advance ruling is being filed to confirm the classification of henna powder and the rate of GST applicable on it. The present application for advance ruling has been filed to confirm the classification of henna powder and the rate of GST applicable thereon. In order to arrive at perfect conclusion, it is pertinent to make reference to various aspects that aid in the classification of their product henna powder under GST regime. At the outset, it is worth noting that while filing application for registration under GST Laws, the list of goods mentions the Chapter 14 for henna powder. The HSN code no. 14041019 specifically mentions Henna Powder and so the applicant has mentioned the classification of their product he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate Recommended GST rate Comments of the Fitment Committee 13 Mehandi paste in cones 3305 / 1404 18% 5% 1. Henna powder falling under heading 1404 attracts 5% GST. 2. Henna used as preparation for hair is classified under heading 3305 and attracts GST at the rate of 18%. 3. To avoid disputes, fitment committee recommends 5% GST rate for mehandi paste in cones. Therefore, in light of the above cited extracts, which are relevant in the present case, the classification should be confirmed under HSN code 1404 with GST rate of 5%. 2. QUESTIONS ON WHICH THE AD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf is specifying the HSN code for henna powder as 14041019, there is no doubt that the said product will not be covered under Chapter 14. Though many in industry are classifying the same good in Chapter 33. Due to this confusion amongst the respected trade itself, he has applied for seeking advance ruling. First what is Henna or Mehendi? As per Wikipedia, Henna (Arabic: حِنَّاء ), also known as mehndi in Hindi-Urdu , and hinah in Hebrew, is a dye prepared from the plant Lawsonia inermis , also known as hina, the henna tree, the mignonette tree, and the Egyptian privet, [1] the sole species of the genus Lawsonia. From the above definition we observe that Henna and Mehendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted. We further observe that it is well known fact that Henna/ Mehendi powder has a natural property of dye/ tanning and is generally used as hair dye. Therefore, we observe that the product is rightly classifiable under chapter heading 3305 as preparations for use on the hair and covered under amended Notification No. 41/2017 -Central Tax (Rate) dated 14 November, 2017 of the principal Notification No. 1/2017 -CT(Rate) dated 28.6.2017 and attracts GST @18% (CGST 9% + SGST 9%). The relevant extract of the Notification No. 41/2017-CT(Rate) dated 14.11.2017 is as under-: Schedule-III (9%) Notification No. 41/2017-CT(Rate) dated 14.11.2017 S.No. Chapter heading/ Sub heading/ tariff Item ..... X X X X Extracts X X X X X X X X Extracts X X X X
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