In re Shrigopal Jaju (GST AAR Rajasthan)
Summary: The supplied material concerns an Advance Ruling application by M/s SHRIGOPAL JAJU, Nagaur, Rajasthan, concerning the GST treatment of Psyllium Seeds (Isabgol). The application was stated to fall within Section 97(2) of the CGST Act, 2017 and the RGST Act, 2017, particularly classification of goods and/or services and determination of liability to pay tax on goods or services.
Statutory Framework for the Advance Ruling
The ruling states that, under Section 102 of the Central Goods and Services Tax Act, 2017 and the Rajasthan Goods and Services Tax Act, 2017, an Advance Ruling may be amended by the Authority for Advance Ruling to rectify an error apparent on the face of the record. Such error may be noticed by the Authority on its own motion or brought to its notice by the applicant, concerned officer or jurisdictional officer within six months from the date of the order. Where rectification would enhance tax liability or reduce admissible input tax credit, the applicant or appellant must be given an opportunity of being heard.
Under Section 103(1), the Advance Ruling pronounced under Chapter XVII is binding only on the applicant who sought it in respect of a matter referred to in Section 97(2), and on the concerned officer or jurisdictional officer in respect of that applicant. Under Section 103(2), the ruling remains binding unless the law, facts or circumstances supporting the original ruling have changed.
Under Section 104(1), where the Authority finds that an Advance Ruling was obtained through fraud, suppression of material facts or misrepresentation of facts, it may declare the ruling void ab initio, following which the provisions of the Acts or Rules apply to the applicant as if the Advance Ruling had never been made.
Any appeal against the Advance Ruling lies before the Appellate Authority for Advance Ruling, Rajasthan, under Section 100 of the CGST Act, 2017 and the RGST Act, 2017. The appeal is to be filed within thirty days from communication of the ruling to the applicant, concerned officer or jurisdictional officer. The Appellate Authority may allow a further period not exceeding thirty days where it is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the original thirty-day period.
Applicant’s Submissions
The applicant submitted that Psyllium seeds (Isabgol) are classifiable under Chapter 12 of the Customs Tariff, covering oil seeds, miscellaneous grains, seeds and fruits and industrial or medicinal plants. The applicant specifically referred to statutory tariff item 12119013.
The applicant stated that Chapter 12 expressly covers seeds and other agricultural produce and that Psyllium seeds, being seeds obtained directly from cultivation and supplied without processing, fall within that Chapter.
The applicant relied upon Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025. Entry No. 87, covering HSN 1211, describes “Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, fresh or chilled”. The supplied material states the applicant’s understanding that this entry fully exempts the product from GST.
The applicant also relied upon Entry No. 77, covering HSN 12, which describes “All goods of seed quality”, and submitted that this entry exempts the product from GST.
The supplied material reproduces Notification No. 10/2025-Central Tax (Rate), issued under Section 11 of the CGST Act, 2017, and states that the notification superseded Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, subject to the matters specified in the notification. The notification exempts specified intra-State supplies of goods from the whole of the central tax leviable under Section 9 of the CGST Act, 2017.
Questions Before the Authority
Question 1: Whether Psyllium Seeds (Isabgol) supplied in their natural, raw and unprocessed form, procured through Agricultural Produce Market Committee (APMC) auctions directly from farmers, without undergoing drying, freezing, crushing or other processing, qualify as “fresh” Isabgol seeds and are exempt under Entry 87 (HSN 1211) of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025 as plants and parts of plants, including seeds and fruits, of a kind used primarily in perfumery, pharmacy or for insecticidal, fungicidal or similar purposes, fresh or chilled.
Question 2: Alternatively, whether the Psyllium Seeds (Isabgol) qualify as “goods of seed quality” and are exempt from GST under Entry 77 (HSN 12) of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025.
Ruling on GST Exemption
On Question 1, the Authority answered “No”. According to the supplied ruling, the Psyllium Seeds (Isabgol) supplied by the applicant cannot be said to qualify as “fresh” Isabgol seeds and are not exempted under Entry 87 (HSN 1211) of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025.
The ruling states that the same are liable to tax at 5% under Notification No. 09/2025-CT dated 17.09.2025.
On Question 2, the Authority again answered “No”, stating that this conclusion follows from its answer to Question 1. Accordingly, the alternative claim for exemption under Entry 77 (HSN 12) of Notification No. 10/2025-Central Tax (Rate) was not accepted.
The supplied material therefore records a ruling that the Psyllium Seeds (Isabgol) covered by the application are not exempt under either of the two proposed entries and are liable to GST at 5% under Notification No. 09/2025-CT dated 17.09.2025.
