In re Narayani Green Private Limited (GST AAR Karnataka)
The applicant, a company engaged in the green energy sector, filed an application before the Authority for Advance Ruling (AAR), Karnataka, under the relevant provisions of the CGST Act, 2017 and KGST Act, 2017. The applicant is involved in the manufacture of second-generation advanced diesel, described as “Drop-in-Fuel,” which is a synthetic and interchangeable substitute for conventional petroleum-derived fuels such as gasoline, jet fuel, and diesel.
The application sought clarification on two primary issues. First, the applicant requested the appropriate HSN code and GST rate applicable to Pyrolysis Oil, which was proposed to be used as the primary raw material, along with petroleum additives as secondary inputs. Second, the applicant sought determination of the HSN code and GST rate applicable to the final product, namely renewable diesel (Drop-in-Fuel). The applicant referred to a notification issued by the Ministry of Petroleum and Natural Gas dated 15.06.2022, stating that the HSN code for Drop-in-Fuel is 38260010 with a GST rate of 12%.
Subsequently, the applicant, through a letter dated 13.02.2026, informed the Authority of its intention to withdraw the application. The reason cited for withdrawal was the need for additional time to conduct further trials and tests relating to the advanced bio-diesel product.
