In re Dhathri Ayurveda Private Limited (GST AAR Kerala)
The classification of the product ‘Dhathri Dahasamini’ under Heading 2103 90 40 of the I schedule to the Customs Tariff Act, 1975 and liable to GST @ of 12% as per entry at Sl. No. 44 of Schedule II of Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
1. M/s. Dhathri Ayurveda Private Limited Kannampilly Bhagom, Kayamkulam, Alappuzha (hereinafter referred to as the applicant) is engaged in the distribution of various herbal ayurvedic products produced by M/s. Warriers Hospital and Panchakarma Cen tire, Velanchira, Kayamkulam, Alapuzha having GSTIN 32AAAFW5661RIZN.
2. At the outset it is clarified that the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, &017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and Notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the Notifications issued there under.
3. The applicant requested advance ruling on the following:
3.1. Is not the product “Dhathri Dahasamani” to be rightfully classifiable under HSN 0910 91 00 instead of classifying Linder HSN 2106 90 50 and therefore tax rate is under entry number 44 of schedule I prescribed by Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017. as amended?
3.2. If not classifiable as above, is not the product to be classifiable under HSN 2103 90 40 and therefore tax rate is under entry No. 44 of schedule I prescribed by Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017. as amended?
4. Contentions of the Applicant:
4.1. The applicant submits that they are the sole distributor of various herbal ayurvedic products produced by M/s. Warriers Hospital and Panchakarma Centre, Velanchira, Kayamkulam, Alappuzha. The products are manufactured under drag license number DL/No.24/25D/O4, issued by the Deputy Drugs Controller ASU and State licensing Authority, Government of Kerala and renewed up to 31 December 2023.
4.2. It is submitted by the applicant that one of the products distributed by them, viz, “Dhathri Dahasamani”, which is used as a flavour and taste component in drinking water is presently sold by classifying under HSN 2106 90 50 and is subjected to tax at the rate CGST 9%, SGST 9% in the local market and IGST @ 18% on interstate transactions.
4.3. The applicant submits that the product is a mixture of a variety of dried herbs and spices. The ingredients are mixed together in a prescribed proportion and packed as per specification. The product in prescribed quantity is added to the required volume of boiling water to enhance the flavour and taste of water so that the consumption of drinking water becomes more inviting. The applicant submitted the list of ingredients and their quantity used in production of each packet of the product “Dhathri Dahasamani” weighing 5G grams as follows;
