The Telangana bench of the GST Authority for Advance Rulings (AAR) recently held that cosmetic Ayurved products will be levied with 18 per cent GST as opposed to the 12 GST expectations.
GST Rate on Cosmetic Ayurvedic Products
As per the justification given by the authority, it said that the ayurvedic products such as hair oil, conditioners, face serums, etc. licenses issued under the AYUSH scheme do not make them medicaments which attract 12 per cent GST and are still considered cosmetics that have to be levied with 18 per cent GST.
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AAR hearing, Hyderabad-based private company IncNut Lifestyle Retail, its products that are known for ‘ayurvedic medicaments’ has been qualified for a 12% GST rate because they had taken the AYUSH license. AAR bench specified its products in two classes medicaments and cosmetics for the goal towards which they would be utilised.
During announcing their decision for the case of IncNut Lifestyle Retail, Telangana AAR sees various decisions along with the Supreme court regarding the excise laws. The principle which is being set by the apex court decisions was if the product’s major operations are to care and not cure then it was not said to be the medicament.
Uses of Cosmetic Ayurvedic Products
Cosmetics would be utilised to rectify the individual’s appearance or beauty, and medicinal products would be utilised to treat some medical conditions. The products utilized precisely for the curing or treating ailments or diseases and consist of remedial ingredients even in small quantities would be branded as a medicament.
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IncNut Lifestyle Retail’s Jeevath Root Stimulating Hair Oil, Vartha Hydrating No-Frizz Hair Conditioner, and multiple face serums were categorized as cosmetics. While additional products such as Shastra Oil Pulling Oral Care Oil, are treated as mendicants.
