In re Gyankeer Products Private Limited (GST AAR Rajasthan)
Question – Classification and applicable rate of GST and/ or Compensation Cess on our product ‘Keer Kokil’ i.e. Tobacco pre-mixed with lime?
Answer- The product intended to be manufactured by the applicant and supplied with brand name ‘Keer Kokil’ is ‘unmanufactured tobacco’ and is classifiable under CTH 2401 20 90 – “others”. The product attracts GST @ 28% (i.e. 14% CGST + 14% SGST) and Compensation Cess as mentioned at Sl. No. 5 of the Notification No. 1/2017-Compensation Cess, dated 28-6-2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act I RGST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s Gyankeer Products Private Limited, Nil 9 Upli Oden, Nathdwara, Rajsamand-313301 Rajasthan – (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under:
(a) Classification of goods and/or services or both:
A. SUBMISSION OF THE APPLICANT (in brief)
1. That M s Gyankeer Products P. Ltd. (hereinafter referred to as the “applicant ) are registered under GST having GSTIN 08AAHCG3822A1Z1. Applicant wishes to manufacture and supply the product “Keer Kokil” which is ‘Tobacco pre-mixed with lime’. It is principally unmanufactured tobacco which has been pre-mixed with lime.
2. That the applicant wishes to manufacture “Keer Kokil” i.e. ‘Tobacco premixed with lime’ where the principal content is tobacco which is mixed with lime. Further, little aroma and menthol is used tor freshness and to avoid bad smell.
3. as per submission made by the applicant on 16.05.2022.
Statement of Applicant’s Interpretation of Law/ Facts
1 Applicant understands that Tobacco and unmanufactured tobacco substitutes are classified under Chapter 24 of the GST Tariff wherein inter alia Unmanufactured tobacco is classified under Heading 2401 chargeable to 28% GST with following 2 categories :
