In re Novozymes South Asia pvt.ltd (GST AAR Gujarat)
The products ‘Rhyzomyx’ and ‘Rhyzomyco’ manufactured and supplied by M/s. Novozymes South Asia pvt. ltd., is covered under Entry Sr.No.61 of Schedule-II of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 of the CGST Act, 2017 on which rate of GST chargeable is 12% (6% SGST +6% CGST).
Read AAAR Ruling : Rhyzomyx & ‘Rhyzomyco classifiable under Tariff item No. 30029030
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
The applicant vide their application for Advance Ruling has submitted that they are engaged in the manufacture and taxable supply of biofertilisers namely RhizoMyx and Rhyizomyco. They have stated that mycorrhiza & endomycorrhiza are active ingredients in these products, the other items being humic acids, sea water kelp extracts etc. are inert materials; that as per Section 2(aa) of the Fertiliser (Control) Order, 1985, BIofertiliser is defined as below:
“(aa). Biofertiliser means the product containing carrier based (solid or liquid) living microorganisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilisation or nutrient mobilization, to increase the productivity of the soil and/or crop/”.
2. The applicant has further stated that mycorrhiza/endomycorrhiza are naturally available microorganisms which belongs to fungus group and these microorganisms are not free living but lives in symbiotic association with the plant root; that more than 90% of the living plants are naturally colonized by Mycorrhiza; that these organisms help in mineral nutrient absorption, moisture absorption etc; that the product when applied, would germinate to attach itself to the roots of the plant and would effectively add a secondary root system to enhance the water and nutrient absorption capacity of the plant, hence based on the Fertiliser (control) Order 1985, the products are treated as biofertilizers; that the goods are rightly classifiable under Chapter 3103 which covers bio fertilizers. They have reproduced the said entry in Customs Tariff as under:
