Case Law Details
In re Incnut Lifestyle Retail Private Limited (GST AAR Telangana)
The applicant claims to be manufacturing Ayurvedic products under licenses issued by AYUSH Department of Government of Telangana. The applicant therefore is of the opinion that all the products manufactured by the applicant can be classified as Ayurvedic medicaments under chapter sub-heading ‘30049011’ @12% under GST.
Authority for advance ruling propose to classify the products either as a cosmetic whose primary function is care and not cure which is used for enhancing-improving a person’s appearance -beauty or on the other hand a medicament used to treat or cure a medical condition by adopting the following parameters:
a) The product should have a drug license.
b) The Composition of the product should have medical ingredients.
c) The product label/character should indicate the function or the purpose for which it is used.
It is seen that all the products mentioned above have a drug license and have Ayurvedic ingredients, but the purpose and function as seen from the literature submitted differ therefore a conclusion for each of the products seprately. AAR held as under –
| Questions | Ruling |
| Whether the products manufactured by him under the licences issued by AYUSH department of Government of Telangana and sold as Ayurvedic products fall under HSN No. 30.04 or under HSN 3304 of the GST Tariff? | The products referred by the applicant are classified as medicament or cosmetic based on the following parameters:
a) Whether the product has a drug license; and b) Whether the Composition of the product has medical ingredients; and c) The function or purpose indicated in the label and literature of the product. |
| By applying the above parameters, the products which are used for care are treated as ‘Cosmetics’ and therefore taxed @9% CGST & SGST each; the products which are used for cure are treated as ‘Medicaments’ falling under Serial No. 63 of Schedule II taxable @6% CGST & SGST each. The product wise details are in the above discussion. |
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TELANGANA
1. M/s. Incnut Lifestyle Retail Private Limited, Office No.G-3, Ground Floor, Modern Profound Tech Park, Kondapur, Serlingampally, Hyderabad, Rangareddy, Telangana – 500084 (36AAECI8820M1Z6) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.
2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.
3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted.
4. Brief facts of the case:
The applicant M/s. IncNut Lifestyle Retail Private Limited is in the business of manufacturing hair oil, shampoos etc., some of which are cosmetics and others Ayurvedic medicaments. They have obtained AYUSH license for each of their product. They are desirous of ascertaining whether the products manufactured by them (52 in number) are cosmetics or medicaments. Hence this application.
5. Questions raised:
Whether the products manufactured by him under the licences issued by AYUSH department of Government of Telangana and sold as Ayurvedic products fall under HSN No. 30.04 or under HSN 3304 of the GST Tariff?
6. Personal Hearing:
The Authorized representatives Sri C.S. Srinivas, Senior Consultant and Sri Balasai Krishna J.Consultant attended the personal hearing held on 27.04.2022. The authorized representatives reiterated their averments in the application submitted and contended as follows:
1. That, the product sold by them is certificate issued by the Ayush Department, Government of Telangana and therefore that it is an Ayurvedic product and is eligible for concessional rate of tax of 12% under HSN 30049011 enumerated at Sl.No.63 of Schedule-II of Notification 1 of 2017.
2. That, they relying on a catena of case law regarding the same of which emphasis is placed on 2015 (323) ELT 209 (SC) wherein the Hon’ble Supreme Court of India while deciding the case of Hindustan Ltd., has ruled that Vaseline is medicament. They also submitted a tribunal order in the case of Aswini Home Pharmacy wherein it was ruled that Arnica Hair Oil is a medicament.
7. Discussion & Findings:
The applicant claims to be manufacturing Ayurvedic products under licenses issued by AYUSH Department of Government of Telangana. The applicant therefore is of the opinion that all the products manufactured by the applicant can be classified as Ayurvedic medicaments under chapter sub-heading ‘30049011’ @12% under GST.
In the statement of relevant facts annexed to the application, the applicant has categorized the products manufactured by him into (6) broad types of Ayurvedic products. These are:
A. For treatment of Hair:
a) Tavas Non-Sticky Hair Fall Oil
b) Viruj Hair Fall Oil for Normal Oily Scalp
c) Shvedan Hair Fall Oil- Non-Frizz Oil- For Dry Scalp
d) Vapra Root Stimulating Hair Oil
e) Niryath Root Stimulating Hair Oil
f) Vanya Root Stimulating Hair Oil
g) Praya Root Stimulating Hair Oil
h) Jeevath Root Stimulating Hair Oil
i) Ahuta Root Stimulating Hair Oil
B. For treatment of dandruff and other hair disorders:
a) Dhavath Hairfall Shampoo (men care)
b) Vikleda Deep Conditioning Shampoo for Dry Hair (men care)
c) Dhavath Hairfall Shampoo
d) Vikleda Deep Conditioning Shampoo for Dry Hair
e) Vartha Hydrating No Frizz Hair Conditioner
f) Rachan Intense Hydration Leave-In Conditioner
g) Paristar Super Shield Sub Block Leave-In Condition
h) Sushant No-Frizz Moisture Solution Leave-In Conditioner
C. For treatment of facial disorders:
(a) Ekansh Hydro Tonic Moisturizing Face Cream
(b) Kavan Hydralite Moisturising Face Gel
(c) Siddh HydraPlenish Moisturizing Face Lotion
(d) Anudha Glow Restore Moisturizing Face Lotion
(e) Sthavi Hydroplenish Moisturizing Face Cream
(f) Niraj HydroMatte Oil Free Face Gel
D. For treatment of mouth and oral disorders:
(a) Shastra Oil Pulling Oral Care Oil
(b) Shuchit Oil Pulling Oral Care Oil
(c) Varta Oil Pulling Oral Care Oil 12.8.
E. For treatment of hair disorders:
(a) Prachay Serum- for moderate hair fall
(b) Pragath Serum- for severe hair fall
(c) Rudhi Serum-for intense hair fall
(a) Suyam Hair Growth with Dandruff Care Serum- for moderate
(b) dandruff
(d) Paratitih Hair Growth with Dandruff Care Serum-for severe dandruff
(e) Vithan Pro Hair Growth Serum
(f) Nuyantra Pro Hair Growth Serum with Dandruff Care
(g) Samroha Advance Hair Growth Serum
(h) Nibhida Advance Hair Growth Serum with Dandruff Care
(i) Prabhav Intense Hair Regrowth Serum
(c) Vardhan Pro Hair Regrowth and Anti Dandruff Serum
(d) Avi PureGlow Antioxidant Face Serum
(e) Arin Collagen Booster Face Serum
(f) Irya Spot Correcting Face Serum
(g) Prakhya Acne Rescue Face Serum
(h) Aloka VC Brightening Face Serum
(i) Prastha Firm Restore Face Serum
(j) Avas Spot Correcting Face Serum
(k) Nipun Lotus Infused Skin Clarifying Face Serum
(l) Tarunya Basil Infused Skin Tightenning Face Serum
(m) Nishkruth Instense Spot Rectifying Face Serum
(n) Rakshith Vitc-C Adv Anti Tan Formula
F. For treatment of facial skin disorders:
a) Rejat Brightening Clay Mask for Tanned Skin
b) Samdha Firming Facial Clay Mask for Ageing Skin
c) Avasya Clarifying Clay Mask for Acne Prone Skin
d) Dhaval Skin Radiance Facial Clay Mask for Pigmented Skin
It is the contention of the applicant that they manufacture Ayurvedic products using Ayurvedic ingredients which are helpful in the treatment of specified disorders and that their products are primarily to prevent, control, cure or mitigate skin and hair related problems and that these medicaments have prophylactic properties also.
They contended that these products are to be used for a specific period prescribed and that there is no requirement to continue the same once the physiological disorder is addressed. They contended that these products are purchased online by the customer after verifying the information, ingredients and usage of the products. The applicant contends that all the goods manufactured by them are sold as medicaments and therefore are eligible to be taxed as Ayurvedic medicaments i.e., under HSN ‘30049011’.
The commodity medicaments & skin care products are enumerated in Notification No. 01/2017 dt. 28.06.2017 under different schedules of the said notification as follows:
| Schedule No. | S.No in the Schedule |
Chapter/Heading /Subheading/ Tariff item | Description of Goods | Rate of CGST |
| I | 178 | 30 | Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name | 2.5 |
| 180 | 30 or any Chapter | Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 1 appended to this Schedule | 2.5 | |
| 181A | 30 | Medicaments (including those used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia, as the case may be, and sold under the name as specified in such books or pharmacopoeia] | 2.5 | |
| II | 62 | 3003 | Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments | 6 |
| 63 | 3004 | Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvaedic, Unani, homoeopathic siddha or Bio-chemic systems medicaments, put up for retail sale | 6 | |
| III | 58 | 3304 | Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure 12 preparations [other than kajal, Kumkum, Bindi, Sindur, Alta] | 9 |
Further the explanation to Notification No. 01/2017 elaborates the procedure to interpret the entries in the schedules of the Notification as follows:
“Explanation –
(1) In this Schedule, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.”
A survey of the material submitted by the applicant reveals that the issue to be determined is whether the products manufactured by them fall under chapter ‘33’ or chapter ‘30’ of the customs tariff code as these products have the shades or qualities of both skin care/cosmetic as well as cure of certain ailments.
The Hon’ble Supreme Court of India in the case of Commissioner of Central Excise, Mumbai IV Vs Ciens Laboratories (2013) 14 SCC 133 formulated the following principles for determining the nature of a product as to whether it is a medicament or a cosmetic:
“Firstly, when a product contains pharmaceutical ingredients that have therapeutic or prophylactic or curative properties, the proportion of such ingredients is not invariably decisive. What is of importance is the curative attributes of such ingredients that render the product a medicament and not a cosmetic.
Secondly, though a product is sold without a prescription of a medical practitioner, it does not lead to the immediate conclusion that all products that are sold over/across the counter are cosmetics. There are several products that are sold over-the-counter and are yet, medicaments.
Thirdly, prior to adjudicating upon whether a product is a medicament or not, Courts have to see what the people who actually use the product understand the product to be. If a product’s primary function is “care” and not “cure”, it is not a medicament. Cosmetic products are used in enhancing or improving a person’s appearance or beauty, whereas medicinal products are used to treat or cure some medical condition. A product that is used mainly in curing or treating ailments or diseases and contains curative ingredients even in small quantities is to be branded as a medicament.”
Further the Hon’ble Apex Court of India in the case of Commissioner of Central Excise vs. Hindustan Lever Ltd. (25.08.2015 – SC) (2015) 10 SCC 742 has addressed this issue as follows:
“To put it in a nutshell, if a particular product is substantially for the care of skin and simply because it contains subsidiary pharmaceutical or antiseptic constituents or is having subsidiary curative or prophylactic value, it would not become medicament and would still quaify as the product for the care of the skin.
There would be certain products which would be purely for the care of skin and certain other products would be clearly medicament and such cases may not pose any problem.
The issue of determination as to whether a particular product falls in Chapter 33 or Chapter 30 would arise in those cases where certain products have the shades or qualities of both, namely, skin care as well as cure of skin diseases. In such cases, the necessary exercise requires to be undertaken.
Whenever product has curative or prophylactic value as well, but the Department still wants the said product to be brought under Chapter Heading 3304.00, onus is on the Department to show that it is not medicament. For this, it will have to demonstrate that curative or prophylactic value is only subsidiary in nature or that the product is covered by the description under chapter notes 5, namely, either it is chiropody or barrier cream to give protection against skin irritants. If the Department fails to discharge this onus, the product has to be treated as medicament and would be covered under Chapter 30.”
The Hon’ble Apex Court in the above case also observed that “What is more relevant is the purpose for which the product is used namely, functional test”.
In Commissioner of Central Excise v. Wockhardt Life Sciences Limited (2012) 5 SCC 585 the Hon’ble Apex Court while discussing the Interplay of Chapter 30 vis-à-vis Chapter 34 (which deals with detergent products), observed that:
“In our view, as we have already stated, the combined factors that require to be taken note of for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put.”
Drawing from the above and based on the information submitted by the applicant, the undersigned authority for advance ruling propose to classify the products either as a cosmetic whose primary function is care and not cure which is used for enhancing-improving a person’s appearance -beauty or on the other hand a medicament used to treat or cure a medical condition by adopting the following parameters:
a) The product should have a drug license.
b) The Composition of the product should have medical ingredients.
c) The product label/character should indicate the function or the purpose for which it is used.
It is seen that all the products mentioned above have a drug license and have Ayurvedic ingredients, but the purpose and function as seen from the literature submitted differ therefore a conclusion for each of the products are made as follows:
A. For treatment of Hair:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Vapra Root Stimulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 2 | Niryath Root Stimulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 3 | Vanya Root Simulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 4 | Jeevath Root Stimulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 5 | Praya Root Stimulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 6 | Ahuta Root Stimulating | Hair Oil | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 7 | Tavas Non Sticky
Hairfall Oil |
For Oily Scalp | Controls Hairfall | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Promotes New Hairgrowth | |||||
| Suitable for Oily scalp | |||||
| 8 | Viruj Hairfall Oil | For Normal Oily scalp | Controls Hairfall | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Promotes New Hairgrowth | |||||
| Suitable for Normal oily scalp Controls Hairfall | |||||
| 9 | Shvedan Hairfall Oil | No-frizz oil for Dry scalp | Promotes New Hairgrowth | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Suitable for dry scalp |
B. For treatment of dandruff and other hair disorders:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Vartha Hydrating No-Frizz | Hair Conditioner | Herbal Ingrdients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Safe and effective | |||||
| Expert formulated | |||||
| Moisture lock solution | |||||
| No harmful chemicals | |||||
| 2 | Rachan Intense Hydration | Leave-in- Conditioner | Herbal Ingrdients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Safe and effective | |||||
| Expert formulated | |||||
| No harmful chemicals | |||||
| 3 | Paristar
Super Shield Sun Block |
Leave-in- Conditioner | Herbal Ingrdients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Safe and effective | |||||
| Expert formulated | |||||
| No harmful chemicals | |||||
| 4 | Sushanth No Frizz
Moisture Solution |
Leave-in- Conditioner | Herbal Ingrdients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Safe and effective | |||||
| Expert formulated | |||||
| No harmful chemicals | |||||
| 5 | Dhavath Hair Fall
Shampoo |
Hair Fall Shampoo | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Sulphate and Paraben Free | |||||
| Safe and Effective Herbal Ingredients | |||||
| 6 | Dhavath Hair Fall Shampoo (Men care) | Hair Fall Shampoo | Doctor Formulated | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Sulphate and Paraben Free | |||||
| Safe and Effective | |||||
| 7 | Vikleda Deep Conditioning Shampoo for Dry hair | Shampoo for Dry
hair |
Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Sulphate and Paraben Free | |||||
| Safe and Effective | |||||
| 8 | Vikleda Deep Conditioning Shampoo for Dry hair (Men) | Shampoo for Dry hair | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Sulphate and Paraben Free | |||||
| Safe and Effective |
C. For treatment of facial disorders:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Sthavi Hydro Plenish | Moisturizing Face Serum | Long lasting skin miniat-urization | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| 2 | Niraj HydroMatte Oil | Free Face Gel | Long lasting skin
miniaturization |
No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| 3 | Anudha Glow Restore | Moisturizing Face Lotion | Long lasting skin miniatu-rization | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| 4 | Ekansh Hydro Tonic | Moisturizing Face cream | Provide longlasting skin moisturization | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| 5 | Kavan Hydralyte | Moisturizing Face Gel | Provide longlasting
skin moisturization |
No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| 6 | Siddh HydraBlemish | Moisturizing Face Lotion | Provide longlasting skin moisturization | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
D. For treatment of mouth and oral disorders:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Shastra Oil Pulling | Oral Care Oil | Strenghtens Teeth and Gums | The label indicates treatment /cure of a medical condition. | Medicament falling under HSN 3003. |
| Reduces Tooth Sensitivity | |||||
| Improves Oral Hygiene | |||||
| Removes Dental Plaque | |||||
| 2 | Shuchit Oil Pulling | Oral Care Oil | Strenghtens Teeth and Gums | The label indicates treatment /cure of a medical condition. | Medicament falling under HSN 3003. |
| Reduces Tooth Sensitivity | |||||
| Improves Oral Hygiene | |||||
| Removes Dental Plaque | |||||
| 3 | Vartha Oil Pulling | Oral Care Oil | Strenghtens Teeth and Gums | The label indicates treatment /cure of a medical condition. | Medicament falling under HSN 3003. |
| Reduces Tooth Sensitivity | |||||
| Improves Oral Hygiene | |||||
| Removes Dental Plaque |
E. For treatment of hair disorders:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Tarunya Basil
Infused |
Skin Tightening Face Serum | Helps retain moisture in skin | No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| Reduces fine lines and wrinkles | |||||
| Gives healthy glow to skin | |||||
| 2 | Nishkruth Intense | Spot-rectify face serum | Reduces Post Acne Spots and scars on skin | No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| Heals post-acne pigmentation | |||||
| Gives healthy glow to skin | |||||
| 3 | Alokha VC Brightening | Face Serum | For lightening tan & Achieving Perfect Skin Complexion | No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| 4 | Prastha firm restore | Face Serum | Improve the visual science of skin Ageing | No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| Maintains Complexion, Hydration and Skin Elasticity | |||||
| 5 | Avas spot correcting | Face Serum | Lightening
blemishes & achieving perfect skin Complexion |
No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| 6 | Avi Pure- glow Anti- oxident | Face Serum | Lightening tan and achieving perfect skin complexion | No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| 7 | Arin
Collagen Booster |
Face Serum | Improving the
visible signs of skin ageing, maintains complexion, hydration and skin elasticity |
No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| 8 | Irya Spot Correcting | Face Serum | Lightening
Blemishes and achieving perfect skin complexion |
No indication for curing or treating any ailment or disease | Not a medicament hence falls
under Chapter 3304 |
| 9 | Vithan Pro Hair | Growth Serum | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Sulphate free | |||||
| Safe and Effective | |||||
| 10 | Samroha Advanced | Hair Growth Serum | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Sulphate free | |||||
| Safe and Effective | |||||
| 11 | Prachay Serum | For
Moderate Hairfall |
Reduces Hairfall | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Boosts Volume | |||||
| Improves Hair Texture | |||||
| 12 | Pragath Serum | For Severe Hairfall | Reduces moderate Hairfall | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Restores damaged Hair- Roots | |||||
| Increases Hair Volume | |||||
| 13 | Rudhi Serum | For Intense Hairfall | Reduces moderate Hairfall | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Restores damaged Hair- Roots | |||||
| Increases Hair Volume | |||||
| 14 | Vardhan
Pro Hair Re- growth & Anti dandruff Serum |
Anti
dandruff Serum |
Herbal Ingredients | The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. | Medicament falling under HSN 3003. |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective | |||||
| 15 | Nuyantra Pro Hair Growth Serum with Dandruff Care | Hair Growth Serum with Dandruff Care | Herbal Ingredients | The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. | Medicament falling under HSN 3003. |
| Doctor Formulated | |||||
| Sulphate free | |||||
| Safe and Effective | |||||
| 16 | Nibhida Advanced Hair growth Serum with Dandruff Care | Hair growth Serum with Dandruff Care | Herbal Ingredients | The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. | Medicament falling under HSN 3003. |
| Doctor Formulated | |||||
| Sulphate free | |||||
| Safe and Effective | |||||
| 17 | Pratitih Hairgrowth with dandruff care serum | For Severe Dandruff | Reduces Severe Dandruff | The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. | Medicament falling under HSN 3003. |
| Soothes scalp from itching | |||||
| Promotes Hair Regrowth | |||||
| 18 | Nipun Lotus Infused Skin | Clarifying Face Serum | Helps control Acne | The label indicates treatment /cure of a medical condition caused by Acne Vulgaris. | Medicament falling under HSN 3003. |
| Fights Acne causing activity on skin | |||||
| Soothes skin and other inflammations | |||||
| Safe and Effective | |||||
| 19 | Rakshith Vit-C Adv | Anti Tan Formula | Heals damage caused due to Sun tan | No indication for curing or treating any ailment or disease. | Not a medicament hence falls under Chapter 3304. |
| Protects skin from harmful UV Rays | |||||
| Restores and repairs damaged skin | |||||
| Safe and effective | |||||
| 20 | Prakhya Acne Rescue | Face Serum | Reduces Breakouts | The label indicates treatment /cure of a medical condition caused by Acne Vulgaris.. | Medicament falling under HSN 3003. |
| Heals existing Acne and Minimize Skin scarring | |||||
| 21 | Suyam Hair Growth with Dandruff Care Serum for moderate Dandruff | For moderate dandruff |
Controls moderate Dandruff | The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. | Medicament falling under HSN 3003. |
| Restore damage Hair root | |||||
| Promotes Hair Regrowth | |||||
| 22 | Prabhav Intense | Hair Re- growth Serum | Herbal Ingredients | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Doctor Formulated | |||||
| Silicone free | |||||
| Safe and Effective |
F. For treatment of facial skin disorders:
| S.NO | PRODUCT NAME |
Purpose/ Label |
Description of product in the material |
Indication for cure/care |
Conclusion of AA |
| 1 | Rejat Brightening Clay Mask | For Tonned Skin | Reduces Sun Tan | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Makes skin bright and glowy | |||||
| Removes dullness | |||||
| 2 | Samdha Firming Facial Clean Mask | For Ageing Skin | Hydrates skin | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Reduces signs of ageing | |||||
| Improves glow | |||||
| 3 | Dhaval Skin Radiance Facial Clay Mask | For Pigmnented Skin | Evens out skintone | No indication for curing or treating any ailment or disease | Not a medicament hence falls under Chapter 3304 |
| Lightens Dark Spots and Patches | |||||
| Improves glow | |||||
| 4 | Avasya Clarifying Clay Mask | For Acne Prone skin | Reduces Acne | The label indicates treatment /cure of a medical condition caused by Acne Vulgaris. | Medicament falling under HSN 3003. |
| Removes excess oils | |||||
| Hydrates Skin |
8. The ruling is given as below:
In view of the above discussion, the questions raised by the applicant are clarified as below:
| Questions | Ruling |
| Whether the products manufactured by him under the licences issued by AYUSH department of Government of Telangana and sold as Ayurvedic products fall under HSN No. 30.04 or under HSN 3304 of the GST Tariff? | The products referred by the applicant are classified as medicament or cosmetic based on the following parameters:
a) Whether the product has a drug license; and b) Whether the Composition of the product has medical ingredients; and c) The function or purpose indicated in the label and literature of the product. |
| By applying the above parameters, the products which are used for care are treated as ‘Cosmetics’ and therefore taxed @9% CGST & SGST each; the products which are used for cure are treated as ‘Medicaments’ falling under Serial No. 63 of Schedule II taxable @6% CGST & SGST each. The product wise details are in the above discussion. |
what is tax on Cannabis extract drop ? Is this 12% or 18% .