In re Dindayal Colloids Private Limited (GST AAR Rajasthan)
In the case of In re Dindayal Colloids Private Limited (GST AAR Rajasthan), the applicant sought an advance ruling on the GST classification and applicable rate for their product, “Tobacco pre-mixed with lime.” The applicant claimed the product should be classified as unmanufactured tobacco under HSN 24012090. However, after reviewing the manufacturing process—which includes mixing lime paste with raw cut tobacco, adding aroma and menthol, and then packaging—the Authority determined that the cumulative processes resulted in a new and distinct marketable product. This product, meant for chewing, falls under the category of manufactured tobacco. The AAR referred to prior rulings and the decision of the Apex Court in State of Madras Vs Bell Mark Tobacco Company (1966) to affirm that the extensive processing qualifies it as a “manufactured product” under GST law. Thus, the product is classified under HSN 24039910 as chewing tobacco. The applicable GST rate for this product is 28%, as prescribed in Schedule IV (Sr. No. 15) of Notification No. 1/2017-Central Tax (Rate), dated June 28, 2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, RAJASTHAN
Note 1: 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.
