Psyllium Seeds Not Fresh; 5% GST Applies: Rajasthan AAR

In re Santosh Devi Daga (AAR Rajasthan)

Summary: The Rajasthan Authority for Advance Ruling considered the GST classification and exemption claimed for Psyllium Seeds (Isabgol) traded through the APMC at Nokha. The applicant, M/s Santosh Devi Daga, a proprietorship acting as a licensed commission agent and trader, stated that cultivators bring Psyllium Seeds to the APMC after harvesting and threshing and that no drying, dehydration, freezing, grading, polishing, crushing, milling, roasting, chemical treatment or other processing is undertaken by the applicant. The applicant sought a ruling on whether the goods are classifiable under Tariff Item 12119013 and exempt under Entry No. 87 of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, and whether threshing by cultivators is merely a harvesting activity rather than processing or manufacture.

The Authority accepted the classification of Psyllium Seeds (Isabgol) under Tariff Item 12119013. It examined Heading 1211, the HSN notes, Notification No. 09/2025-Central Tax (Rate), Notification No. 10/2025-Central Tax (Rate), CBIC FAQ F.No. 332/2/2017-TRU and Circular No. 163/19/2021-GST dated 06.10.2021. The Authority focused on the condition that Entry No. 87 of Notification No. 10/2025 exempts specified plants and parts of plants, including seeds and fruits, only when they are “fresh or chilled”. It observed that the exemption notification must be construed strictly and that the burden of establishing fulfilment of the exemption conditions rests on the person claiming the exemption.