Gujarat AAAR Remands Rice Husk Board GST Classification Matter Back to AAR

The applicant, M/s Vegan Wood Private Limited, manufactures Natural Fibre Composite Board, also known as Rice Husk Board. These boards are made using agro waste like rice husk powder, combined with calcium carbonate, PVC resin, recycling waste, and processing aids such as thermos-coupling agents, lubricants, etc.

The applicant filed an appeal under section 100 of the CGST Act, 2017 and the GGST Act, 2017 before the Gujarat Appellate Authority for Advance Ruling (AAAR) to challenge the order of Gujarat AAR.

The applicant sought an advance ruling on the following questions:

“Whether the rice husk board manufactured by us comprising of natural fiber (rice husk powder), calcium carbonate, recycling waste & other processing aid as well as PVC resin, wherein PVC acts only as a bonding agent would remain classified as wood and articles of wood under chapter 44 & attract 12% rate of GST?”

The AAR in its ruling dated 21.03.2025 held that the application was non-maintainable, observing that the assessee did not give the details of purchase invoices of the inputs, copies of sales invoices, etc.

The aggrieved applicant, therefore, approached the Gujarat AAAR. The key argument of the applicant was that their product is covered under HSN 441193 as Natural Fibre Composite Boards/Sheets (NFC), especially Rice Husk Board and Rice Husk Profile. As per the applicant, the same would attract 12% GST.

The applicant submitted the copies of the purchase invoices of raw material and sales invoices of the products before the AAAR, claiming that he was not able to file these submissions earlier.

Therefore, to give one more opportunity to the applicant, the AAAR remanded the case back to AAR for fresh consideration.