In re Windlass Biotech Limited (GST AAR Uttarakhand)
‘Dry Powder Containing Protein Powder with Vitamins & Minerals‘ being manufactured by M/s Windlass Biotech Limited, 40/1, Mohabewala Industrial Area, Dehradun, Uttarakhand under the name ‘Protowits’ is a Food supplement which is fit to be classified under HSN 2106.
Read AAAR Order: Dry Powder Containing Protein Powder with Vitamins & Minerals classifiable under Chapter 21
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the Central Goods and Services Tax Act, 2017 and Uttarakhand State Goods & Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made thereunder filed by M/s Windlass Biotech Limited ,40/1, Mohabewala Industrial Area, Dehradun, Uttarakhand (hereinafter referred to as ‘the applicant’) registered with the GSTIN having Registration No. 05AAACW3417C1Z and seeking advance ruling on the following question:
1) Classification and Rate of Applicable GST on product manufactured by the applicant i.e. ”Dry Powders containing Protein Powder with Vitamins & Minerals”.
2. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act.
3. 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.
4. 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.
5. Since applicant has sought advance ruling on classification of service and applicability of notifications, therefore, in terms of said Section 97(2)(a) of the Act, the application filed by the applicant has been admitted.
6. On perusal of records submitted by the applicant, we find that the applicant is registered in Uttarakhand having GSTIN bearing no. 05AAACW3417CIZV. In their written submission submitted by the applicant along with their application, they have submitted that:-
1) The applicant is a Limited Company engaged in manufacture and supply of Pharmaceutical Formulations/ Nutraceuticals under its own brands for being marketed by the applicant on its own. That apart from above, the applicant is also engaged in manufacture of Pharmaceutical Formulations for others on P To P basis as well as on Loan Licence Basis.
2) The applicant has obtained Drug Licence bearing number 1/UA/SC/P/2001 and 2/(JA/2001 both renewed and valid upto 26.05.2026 and FSSAI licence bearing number 10018012000504 dated 16.06.2020. Copies of licences have also been submitted.
3) Further for manufacture of pharmaceutical formulations/ nutraceuticals, the applicant has obtained specific product approvals from Drug Authority / FSSAI as applicable.
4) The applicant has ventured for manufacture of “Dry Powders containing Protein Powder with Vitamins & Minerals”. That the applicant has obtained product approval from Drug Controlling & Licencing Authority (Mfg.) of Uttarakhand. A copy of the same has also been submitted.
5) Since the product is manufactured in terms of Drug Licence and since the product is for “Prophylactic Use Only” therefore the applicant shall be specifically mentioning on the product itself that the product is for “Prophylactic Use only”. A sample copy of the label devised has also been submitted.
6) It is pertinent to mention here that the product approval has been granted in terms of Entry Serial No. 138 of the FDC (Fixed Dose Combination) List dated 12.07.2018 under Category C of the Drugs & Cosmetics Act. A copy of the same has also been submitted.
7) Since the product contains Protein Powder as well as Vitamins and Minerals, therefore to seek clarity as to whether this product is eligible to be classified under HSN 3004 or not, present application is being filed by the applicant before the Honourable Authority for Advance Ruling, Uttarakhand.
7. The applicant has further submitted that the product in question shall be manufactured by them in terms of Licence to manufacture for sale or distribution of drugs specified in Schedule C and C(1) at the premises situated at 40/1, Mohabewala Industrial Area, Dehradun and the same has been issued in Form 28 by the Drug Controller and Licencing Authority (Mfg), Uttarakhand. That since the product has “Prophylactic” use therefore, the said product merits classification under HSN 3004 and is eligible to be supplied on payment of GST Reliance is further placed on Order passed by the Honorable Himachal Pradesh Authority for Advance Ruling bearing number 12-23/2019-20-EXN-ARA-GST-615/5-30201 dated 21.11.2019, wherein the Honourable Authority with regard to product namely “Protein Powder with Vitamins and Minerals” has held that the same is classifiable under HSN 3004, A copy of the same has been submitted as Annexure-6.
8. Accordingly hearing was fixed on 29.07.2021 which was attended by Mr. Rajesh Gupta, Chartered Accountant on behalf of the applicant and he reiterated the facts as stated by the applicant in their application. Following the discussions held during the course of hearing Mr. Rajesh Gupta has submitted further clarifications on 09.08.2021 wherein he has clarified that:
1) The applicant has considered certain reputed brands of protein powder to substantiate the difference in product manufactured by the applicant with that of other players. The basic difference is the content of Protein in the respective products. That we are furnishing below a chart indicating protein content in various Protein Powders:
