Case Law Details
Reckitt Benckiser (India) Limited Vs State of Tamil Nadu through Its Principal Commissioner of GST (Madras High Court)
In a significant ruling, the Madras High Court addressed a contentious issue concerning the Goods and Services Tax (GST) classification of two popular household cleaning products: Harpic Disinfectant Toilet Cleaner and Lizol Disinfectant Floor Cleaner. The judgment, Reckitt Benckiser (India) Limited Vs State of Tamil Nadu through Its Principal Commissioner of GST, is a noteworthy case that explores the nuances of tax classification under the GST regime, showcasing the challenges businesses face and the legal recourse available to them.
Background of the Dispute
The crux of the dispute revolved around the classification of Harpic and Lizol under the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act). The state authorities classified these products under Item 31 of the Fourth Schedule to the TNGST Act, imposing a tax rate of 14%. Reckitt Benckiser (India) Limited, the petitioner, contested this classification, arguing that these products are disinfectants and should be taxed at 9% under Item 87 of the Third Schedule to the TNGST Act for the period from July 1, 2017, to November 13, 2017.
The Legal Tussle
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