Telangana AAR: 18% GST on Biofertilizers & Herbal Supplements

The Authority of Advance Ruling (AAR Telangana) for the case of M/s. Avinja Biotechnologies Private Limited. has held 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 applied 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 Boosters Under Bio Fertilizer: They pose two segments.

• Urban Roots: It supports treating the soil to be healthy and pollution-free via bioremediation.
• Bio Kavach: It assists in rectifying the nutrient balance of the soil and restores the fertility of the soil.

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GST Information About Findings

The applicant is engaged in the business of production and manufacture of Bio Fertilizers and immunity boosters. As per 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 urge AAR to let them know the classification of the aforesaid product either HSN Code 30039011 (GST rate 12%) or HSN Code 31010092 (GST rate 5%) to be utilised.

(II.) That their second product beneath the bio fertilizer- Bio Kavach that supports in nutrients balancing of the soil and restores the fertility rectifies the humthem soil content.

Composition: Bacillthemspp, Actinomycetes, Macro and Micro nutrients.

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

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(III.) Their product beneath 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

They urge the AAR to let them understand about the classification of the aforesaid product either HSN Code 220299 (GST Rate 18% or HSN 30039011 (GST rate 12%) to be used.

Ruling- For GST Rate

Based on the preceding conversation, here’s a clarification regarding the queries presented by the applicant:

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.