Psyllium Husk powder classifiable under HSN 12119032 and attracts GST @ 5%

May 11, 2020

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?

  • Isabgol seeds fall under heading 1211.
  • Fresh Isabgol seeds aract Nil GST
  • Dried or frozen Isabgol seeds aract 5% GST

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).

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