In re Devendrakumar Rambhai Patel (GST AAR Gujarat)
The supply of applicant of Kandi ravo’ is classifiable under 24013000. The applicant is liable to pay GST at 28% [14 % CGST and 14 % SGST] in terms of notification No. 1/2017-CT(Rate), Sr. No. 13 of Schedule IV subject to the condition that goods are cleared without brand name.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
M/s. Devendrakumar Rambhai Patel, Milkat No. 1276, Maneklal Shanabhai Parmar, Timba, Anand, Gujarat 388 170 [for short—`applicant’] is registered under GST and their GSTIN is 24BVAPP6398C1ZH.
2. The applicant is engaged in the business of wholesale/retail trading of unprocessed tobacco which they purchase directly from the farmers. Shri Devendrakumar Rambhai Patel, is the proprietor & carries out his business with his own name as their trade name.
3. The applicant, now wishes to undertake supply of the product known as `Kandi Ravo’, which is a tobacco waste. The manufacturing process is mentioned in detail, which is reproduced below for ease of reference viz
4. Additionally, the applicant states that their product falls under the category of `unmanufactured tobacco without lime tube; that they will not be selling any tube of lime inside the pouches; that though the waste tobacco is mixed with natural clay and water, the nature of the product is not altered & e consumer base remains the same ie tobacco manufacturers; that it is never used in pan masala and is never put in a paan [also called betel quid, (source Britannica)]; that it is different from chewing tobacco and zarda scented tobacco; that as per their understanding GST compensation cess is also not leviable on the product. The applicant has further informed that it is sold in 30-35 kg bags & its price range is also not similar to that of chewing/scented tobacco.
5. In view of the foregoing, the applicant has sought a ruling on the following question viz
1. What will be the classification of the goods Wandi Ravo’.
6. Additional Commissioner(Technical), Central Goods & Service Tax, Vadodara-I Commissionerate, vide his letter no. IV/16-22/Tech/AR/M/s. D R Patel/22-23 dated 17.3.23, offered the following comments viz
