Andhra Pradesh AAR Clarifies 18% GST Rate On Spent Earth under HSN Code 3802 9019:

Andhra Pradesh AAR Clarifies 18% GST Rate On Spent Earth under HSN Code 3802 9019 A company, Sri Venkatarama Gaia Private Limited (Applicant), has filed an application dated October 17, 2025, in FORM GST ARA-01 seeking Andhra Pradesh Authority for Advance Ruling (AAR) under Section 97(1) of the Central Goods and Services Tax Act, 2017, and the AP Goods & Services Tax Act, 2017. The applicant company possesses GSTIN 37AADCS1673D1ZH and is located at D.No. 15-7-66, Hussenpuram Road, Hussenpuram, Samalkot, Kakinada, Andhra Pradesh, 533434.

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The applicant company is involved in the business of extraction of rice bran edible oil from boiled rice bran/raw rice bran in a solvent extraction plant and is also a manufacturer of refined rice bran oil from captive edible oil transferred from the solvent plant and also edible oil procured from outside. Additional by-products such as other vegetable oil residues and gunny cuttings are also handled by the applicant. The business of the applicant involves processes like processing, refining, and supplying these goods. Of which the refining of rice bran oil involves four stages, namely degumming, dewaxing, bleaching, and deodorising.

Query Raised Before AAR:

The appellant company had sought the present Andhra Pradesh Authority for Advance Ruling (AAR) to clarify the following question: “Question: HSN Code and CGST & SGST rate applicable on spent earth?"

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Clarification Given by AAR:

The Andhra Pradesh Authority for Advance Ruling (AAR) has given the following clarification on the query asked by the applicant: The authority noted that the applicant has used HSN 3802 90 19 and imposed GST at 18% for both the ‘bleaching earth’ and ‘spent earth’. However, due to the recent rationalisation in GST rates, there were uncertainties concerning the GST rate for ‘spent earth’ as the purchasers consistently urged for a lower rate of GST at 5% and requested an advance ruling on the HSN code and rate of tax for spent earth. The Andhra Pradesh AAR has clarified that HSN code 3802 90 19 attracts a GST rate of 18% (9% CGST + 9% SGST).