The Tamil Nadu Authority for Advance Ruling (AAR) has stated that 5% GST will apply to Quick Lime (90% purity) and Hydrated Lime (85%–95% purity) manufactured and supplied by M/s Kaycee Industrial Chemicals Pvt. Ltd., settling the long-standing industry confusion over whether the applicable rate should be 5% or 18%.
The applicant, based in Thoothukudi, asked for clarity after customers, including the Kerala Water Authority, raised doubts due to changing state interpretations on the GST rate for lime products of lower purity levels.
At the time of the proceedings, AAR analysed the manufacturing process, chemical composition, and applicable tariff headings. The authority cited that the company’s products contained 10–15% impurities and thus do not qualify as “pure” Calcium Oxide or Calcium Hydroxide under Heading 2825 of the Customs Tariff.
Rather, the goods which come under HSN 2522, which covers Quicklime, Slaked Lime, and Hydraulic Lime, are a category on which 5% GST is applicable as per both Notification No. 1/2017 and the revised Notification No. 9/2025.
The AAR concluded that:
- Quick Lime (90% purity)
- Hydrated Lime (85%–95% purity)
Will be levied to tax at 5% GST (2.5% CGST + 2.5% SGST)
Till there is a change in facts, laws, or situations, the ruling binds the applicant as well as the jurisdictional tax officers.
| Applicant Name | M/s. Kaycce Industrial Chemicals Private Limited |
| GSTIN of the applicant | 33АACCK1996Q1ZX |
| Tamil Nadu GST AAR | Read Order |
