Facts
- Sarda Bio Polymers Pvt. Ltd (Applicant) is engaged in the manufacture of Psyllium Husk Powder. The applicant procures Psyllium Husk which is crushed to form Psyllium Husk Powder.
- The applicant submits that their product “Psyllium Husk Powder” is not expressly defined anywhere either in the Noficaon No. 1/2017-Central Tax (Rate) dated 28-6-2017 prescribing GST rates for levy of CGST. Consequently, the rate of GST applicable on the product “Psyllium Husk Powder” is 18% under the residual entry
- The applicant further submits that according to serial no. 73 HSN 1211 of the Noficaon No. 1/2017- Central Tax (Rate) dated 28-6-2017, 2.5% CGST rate has been prescribed.
- The applicant submits that their product Psyllium musk Fowaer does not fall under the above-cited entry as the above entry includes plants and parts of plants including seeds and fruits used in pharmacy whether or not crushed or powdered
- The applicant is engaged in the process of crushing and powdering the husk of Psyllium and not its seed. The process begins with the cleaning of raw seeds and de-husking. The seeds are crushed and husk is separated. The Psyllium Husk Powder is obtained by crushing the pure husk Psyllium.
Issue before the AAR
- Whether GST rate of 5% or 18% is applicable on Psyllium Husk Powder?
Discussion and Finding of AAR
- Psyllium (commonly known as Isabghol) is a plant whose parts such as seeds and others are used to prepare some Pharmacy products especially laxative medicines.
- Psyllium Husk Powder is covered under Serial No. 73 of Schedule-I of the Noficaon 01/2017 Central Tax(Rate) attracting GST @ 5% (SGST 2.5% + CGST 2.5%). The relevant entry in respect of Psyllium Husk
The powder is as under-
S.no | Chapter heading/Sub heading/TariffItem | Descripon of Goods |
73 | 1211 | Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for inseccidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered |
Psyllium is a plant whose part (seed/husk) is crushed in powder form to prepare a pharmaceutical product.
- CBIC further Clarificaons in form of FAQs vide F. No. 332/2/2017- TRU in December 2017 regarding classification and rate of GST on Psyllium Husk and Seeds. The relevant entry is as under—
S.no | Querries | Replies |
15 | What is the HS code and the GST rate for Isabgol seeds? |
|
16 | What is the HS code and the GST rate for Isabgol husk? | Isabgol husk falls under 1211 and aracts 5% GST |
- Psyllium Husk Powder, a preparation made from Psyllium Plant or its parts is classifiable under HSN 12119032 and attracts GST @ 5% (CGST 2.5% + SGST 2.5%) as provided under Noficaon No. 1/2017 Central Tax (Rate) dated 28-6-2017 (as amended).