In re Patanjali Ayurved Ltd. (GST AAR Uttarakhand)
1. Gomaya Samidha – Patanjali Ayurved ka Utpad is a brand name of M/s Patanjali Ayurved Ltd. and it is an organic manure covered under Chapter Heading no. 3101.
2. Gomaya Samidha – Patanjali Ayurved ka Utpad is not exempt from levy of GST in terms of S.No. 108 of Notification No.2/2017 – Central Tax (Rate) dated 28th June, 2017. Further this product is also not covered under S.No. 113 of Notification No. 2/2017 – Central Tax (Rate) dated 28th June, 2017 and hence not exempt under this entry also.
3. Gomaya Samidha – Patanjali Ayurved ka Utpad is leviable to GST @5% in terms of S. No. 182 of Schedule 1 to Notification No. 1/2017 – Central Tax (Rate) dated 28th June, 2017 as the same is covered under this entry.
4. Gomaya Samidha – Patanjali Ayurved ka Utpad is not leviable to GST @5% in terms of S. No. 263 A of Schedule I to Notification No. 1/2017 – Central Tax (Rate) dated 28th June, 2017as the same is not covered under this entry.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s Patanjali Ayurved Ltd.. D-38, Industrial Area, Haridwar, Uttarakhand (here in after referred to as the applicant ) is registered with the GSTN having Registration No. 05AAECP4424CIZX and seeking advance ruling on the following question:
Question No.1: As per the facts and circumstances as explained in Annexure-I supra, what is the correct classification (HSN Code) for Subject Goods i.e. ‘Gomaya Samidha’?
Question No.2: As per the facts and circumstances as explained in Annexure-I supra, whether the Subject Goods i.e. ‘Gomaya Samidha’ is exempt from levy of GST in terms of S. No. 108 of Notification No.2/2017 – Central Tax Rate dated 28th June, 2017 or in the alternative in terms of S.No. 113 of Notification No.2/2017 – Central Tax Rate dated 28th June, 2017?
Question No.3: If the answer to Question No. 2 supra is in the negative, whether the Subject Goods i.e. ‘Gomaya Samidha’ is leviable to GST @5% in terms of S. No. 182 of Schedule I to Notification No. 1/2017 – Central Tax (Rate) dated 28th June, 2017?
Question No.4: If the answer to both Question No. 2 and 3 supra is in the negative, whether the Subject Goods i.e. ‘Gomaya Samidha’ is leviable GST @5% in terms of S. No. 263A of Schedule 1 toNotification No. 1/2017 – Central Tax (Rate) dated 28th June, 2017?
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. As per the said subsection (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of:-
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
4. Since applicant has sought advance ruling on applicability of notifications & determination of tax liability, therefore, in terms of said Section 97(2)(b) & (e) of the Act, the application filed by the applicant has been admitted.
5. On perusal of records submitted by the applicant, we find that the applicant is registered in Uttarakhand having GSTIN bearing no. 05AAECP4424CIZX. On going through the statement of relevant facts put forth by the applicant in Annexure-I they have submitted that:
a) The Applicant undertakes various R&D activities for the creation of new products or increasing the efficiency of existing ones and is thus able to introduce new products in the market from time to time. That one such new product which is now developed and introduced by the Applicant in the market is ‘Gomaya Samidha’ (‘Subject Goods) which is recently developed by the Applicant to be used in the process of performing hawan i.e. ‘Yajna’. The relevant ingredients used in the manufacture of the Subject Goods are as follows:
95% cowdung; and 5% herbs
(Copy of front back images of the packing of the Subject Goods along with the lab test report certifying the ingredients has also been enclosed by the applicant)
b) That from the said label, ingredients and the lab test report it can be seen that the Subject Goods is nothing but ‘cowdung’ which is marketed to be used in the process of performing Yajna. The usage of the Subject Goods in performing Yajna shall purify the surrounding air by reducing bacteria as cowdung is considered to be anti-bacterial.
c) As per S. No. 108 of the Exemption Notification No.2/2017-Central Tax dated 28th June, 2017 all goods and organic manure falling under HSN chapter heading 3101 are exempt from levy of GST. The relevant text of the said provisions is reproduced below.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No.2/2017 – Central Tax Rate F.No.354/117/2017-TRU
Dated 28th June, 2017
In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to this notification, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule, from the whole of the central tax leviable thereon under section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017).
SCHEDULE
