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TMI Blog2022 (1) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... under Category C of the Drugs Cosmetics Act. On going through the said FDC list, it is found that SI. No. 138 of the said list does not cover the product which contains all the ingredients - the product namely Protowits is not being manufactured as per FDC list. Sub-heading nos. 3004 50 10 and 3004 50 20 cover Haematinic and Erythropoietin preparations and Preparations of minerals and their supplements respectively and sub-heading nos. 3004 50 31 to 3004 50 90 cover only Preparations of vitamins as described under these sub-headings. There is no mention of any substance which contains protein in any form. However, protein concentrates and textured protein substances are covered under chapter heading no. 2106. Thus, the product Dry Powder Containing Protein Powder with Vitamins Minerals being manufactured by the applicant under the name Protowits is a Food supplement which is fit to be classified under HSN code 2106 with 18% GST rate. X X X X Extracts X X X X X X X X Extracts X X X X ..... of service and applicability of notifications, therefore, in terms of said Section 97(2)(a) of the Act, the application filed by the applicant has been admitted. 6. On perusal of records submitted by the applicant, we find that the applicant is registered in Uttarakhand having GSTIN bearing no. 05AAACW3417CIZV. In their written submission submitted by the applicant alongwith their application, they have submitted that:- 1) The applicant is a Limited Company engaged in manufacture and supply of Pharmaceutical Formulations/ Nutraceuticals under its own brands for being marketed by the applicant on its own. That apart from above, the applicant is also engaged in manufacture of Pharmaceutical Formulations for others on P To P basis as well as on Loan Licence Basis. 2) The applicant has obtained Drug Licence bearing number 1/UA/SC/P/2001 and 2/(JA/2001 both renewed and valid upto 26.05.2026 and FSSAI licence bearing number 10018012000504 dated 16.06.2020. Copies of licences have also been submitted. 3) Further for manufacture of pharmaceutical formulations/ nutraceuticals, the applicant has obtained specific product approvals from Drug Authority / FSSAI as applicable. 4) The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.08.2021 wherein he has clarified that: 1) The applicant has considered certain reputed brands of protein powder to substantiate the difference in product manufactured by the applicant with that of other players. The basic difference is the content of Protein in the respective products. That we are furnishing below a chart indicating protein content in various Protein Powders: S. No. Product/ Brand Protein content Protein content (%) 1 Protowits (our product) Per 30 gm 5 g 16.67 2 Protinex Per 30 gm 10.2 gm 34.00 3 Nestle Resource High Protein Per 100 gm 45 gm 45.00 4 Horlicks Protein Plus Per 100 gm 34 gm 34.00 5 Mama Protinex Per 100 gm 32 gm 32.00 6 Pure Protein Per 39 gm 25 gm 64.10 7 Fast & Up Whey Per 30.4 gm 24 gm 78.95 2) From the above chart, it is amply clear that the protein content in any of the other reputed "Brands" ranges between 32% to 78.95%, whereas our product has a content of 16.67% which makes it different from other products. That in case a person needs to have high protein diet, the said person shall not opt for our product as the protein content in our product is much less than any other product in market. This low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority, may kindly be pleased to appreciate the same and give Ruling on the issues raised by us in our application for Advance Ruling. Views of Concerned Officer Mrs. Preeti Manral; The applicant has mentioned that the product approval has been granted in terms of entry Serial No. 138 of the FDC (Fixed Dose Combination) list dated 12-07-2018 under category C of the Drugs & Cosmetics Act. However, going by list given by applicant, Protowits the products under question does not meet the Fixed Dose Combination criteria as laid out in entry 138. It is pertinent to mention here that approval under serial No. 138 is for a combination of Protein Hydrolysate 20% 5mg+Calcium 225mg+Phophorus 174mg+Pyridoxine Hydrochloride IP 0.5 mg +Cyanocobalamin IP 1 mcg+viatamin D3 IP 100IU Niacinamide IP 15mg+Folic Acid IP 0.3 + Zinc 5mg+ Iron 7.5 mg per 30 gm powder. While applicant's products in addition to above combination also contains- Magnesium Sulphate USP 1.5 mcg, Magnesium Oxide IP 4mg, Cupric Sulphate USP 2.5mg, Chromium as Chromium Chloride USP 25 mcg, Selenium Dioxide Monohydrate USP 20mcg, Potassium Chloride IP 5mg, Sodium Chloride IP 33mg, Iodine as Potassium Iodide IP 100mcg, Excip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me is attached for your kind perusal which states "nutraceuticals, as well as health and fitness supplements, are now subject to 18% GST" (Annexure 3). Therefore, it is submitted that 'Protowits' the product in question which is a mix of 21 protein powder, Vitamins and Minerals attracts GST rate @ 18%. DISCUSSION & FINDINGS; 1. We have gone through the application filed by the applicant for Advance ruling and the supporting documents submitted by them as well as oral submission made by the Authorised Representative of the applicant, Mr. Rajesh Gupta, Chartered Accountant, at the time of personal hearing held on 29.07.2021 and written submission filed by the applicant on 09.08.2021. We have also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. 2. On going through the application for advance ruling, we find that the product namely "Dry Powder Containing Protein Powder with Vitamins & Minerals" under the name 'Protowits' is being manufactured by the applicant after obtaining the Licence from drug controlling & Licensing Authority (Mfg.) of Uttarakhand. As per said Licence b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule C and C(l) to the Drugs & Cosmetics Rules, 1943 as well as all the ingredients contained in it also not covered by Sl.No. 138 of the FDC (Fixed Dose Combination) List dated 12.07.2018, we prefer to look into the taxability of that product under proper chapter heading of GST tariff to decide whether the said product is a food supplement or medicament. As per GST law, taxability is decided as per HSN code of the said product and not as per the license issued for manufacture of the said product by any other competent authority. HSN code 3004 50 as per GST tariff reads as under: 3004 MEDICAMENTS (EXCLUDING GOODS OF HEADING 3002, 3005 OR 3006) CONSISTING OF MIXED OR UNMIXED PRODUCTS FOR THERAPEUTIC OR PROPHYLACTIC USES, PUT UP IN MEASURED DOSES (INCLUDING THOSE IN THE FORM OF TRANSDERMAL ADMINISTRATION SYSTEMS) OR IN FORMS OR PACKINGS. 3004 50 Other, containing vitamins or other products of heading 2936: 3004 50 10 Haematinic and Erythropoietin preparations 12% 3004 50 20 Preparations of minerals and their supplements 12% Preparations of vitamins: 3004 50 31 Of Vitamin A 12% 3004 50 32 Of Vitamin B1 and B2 and their salts thereof 12% 3004 50 33 Of Vitamin B9 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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