GST Rate of 18% applicable on Bio Fertilizer and Herbal Supplement

The Authority of Advance Ruling (AAR Telangana) in the matter of M/s. Avinja Biotechnologies Private Limited. has ruled out that the GST Rate of 18% is applicable on Bio Fertilizer and Herbal Supplement.

M/s. Avinja Biotechnologies Private Limited.H.No. 14, AOC Center, Plot No 3-43-141, Mohammedi Enclave, Wellington Road, West Marredpally, Hyderabad, Telangana- 500026(36AATCA9073F1Z7) 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.

The applicant, M/s. Avinja Biotechnologies Private Limited, Production and manufacturer of Bio Fertilizers and Immunity BoostersUnder Bio Fertilizer: They have two segments

i. Urban Roots: Helps in treating the soil to be healthy and free of pollution through bioremediation.

ii. Bio Kavach: Helps in improving the nutrient balance of the soil and restores soil fertility. Immunity Boosters Natural Herbal Supplement for prevention and Protection against viruses. It is made from unique herbs using special biopharmaca Extraction.

Findings:

The applicant is in the business of production and manufacture of Bio Fertilizers and immunity boosters. According to their averments:

i. One of the Products i.e., Urban Roots being Bio Fertilizer acts as a both fertilizer and biological control agent with the below Composition: Ingredients: Total Phosphate Solubilizing bacteria 5.2*10° Cells/ml Azadirachtaindica extract, Phyllanththemniruri, Cymbopogonciratthem.

That they request the AAR to let them know the classification of the above product either HSN Code 30039011 (GST rate 12%) or HSN Code 31010092 (GST rate 5%) to be used.

ii. That their Second Product under the bio fertilizer-Bio kavach which helps in nutrients balance of soil and restores fertility, improves the humthem content of the soil.

Composition: Bacillthemspp, Actinomycetes, Macro and Micro nutrients.

That they request the AAR to let them know the classification of the above product either HSN Code 30039011 (GST rate 12%) or HSN Code 31010092 (GST rate 5%) to be used.

iii. That their product under the Immunity Booster-Avinja 7 is a herbal supplement made from herbs and Biopharmaca Extraction.

Ingredients: Graviola Leaf Extract, Phyllanththemniruri, Garcinia Mangostana Extract, Tinospora Cordifolia and water

That they request the AAR to let them know the classification of the above product either HSN Code 220299 (GST Rate 18% or HSN 30039011 (GST rate 12%) to be used.

Ruling:

In view of the above discussion, the questions raised by the applicant are clarified as below:

Question 1: HSN Code of Urban Roots and its Rate of tax.

Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST & 9% SGST.

Question 2: HSN Code of -Bio kavach and its Rate of tax.

Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST & 9% SGST.

Question 3: HSN Code of Immunity Booster – Avinja 7 and its Rate of tax.

Serial No 453 of Schedule III of Notification No. 1/2017. Rate of Tax 9% CGST & 9% SGST.

For Official Ruling Download PDF Given Below: