Page 96 - GSTL_16th July 2020_Vol. 38_Part 3

334 GST LAW TIMES [ Vol. 38
Schedule-I (2.5%)
Notification 1/2017-Central Tax (Rate), dated 28-6-2017
S. Chapter heading/ Description of Goods
No. Sub-heading/
Tariff Item
73 1211 Plants and parts of plants (including seeds
and fruits), of a kind used primarily in per-
fumery, in pharmacy or for insecticidal, fun-
gicidal or similar purpose, frozen or dried,
whether or not cut, crushed or powdered

We find that, Psyllium is a plant whose part (seed/husk) is crushed
in powder form to prepare a pharmaceutical product. The aforesaid
entry of Notification explicitly matches the preparation/process
undertaken by the applicant.
• We further observe that CBIC issued Clarifications in form of FAQs
vide F. No. 332/2/2017-TRU in December, 2017 regarding classifica-
tion and rate of GST on Psyllium Husk and Seeds. The relevant en-
try is as under -
TABLE
S. Queries Replies
No.
15. What is the HS code and the 1. Isabgol seeds fall under Heading
GST rate for Isabgol seeds? 1211.
2. Fresh Isabgol seeds attract Nil
GST.
3. Dried or frozen Isabgol seeds
attract 5% GST.
16 What is the HS code and the 1. Isabgol husk falls under 1211
GST rate for Isabgol husk? and attracts 5% GST.

• In view of the above facts we observe that Psyllium/1sabgol is a
plant of which parts are used to prepare powder to be used as
pharmaceutical product. As the plants and parts of plants (includ-
ing seeds and fruits), whether frozen or dried, cut or not cut,
crushed or not crushed and powdered or not powdered falls under
S. No. 73 of Schedule-I of Notification No. 1/2017-Central Tax
(Rate) dated 28-6-2017 (as amended) and attracts GST @ 5% (SGST
2.5% + CGST 2.5%). The classification and rate of GST of the Psylli-
um/Isabgol and its seed has also been clarified by CBIC clarification
in December, 2017.
• We further observe that, the applicant has contested that as the clas-
sification and rate of GST on Psyllium Husk Powder is not men-
tioned anywhere in Notification No. 1/2017-Central Tax (Rate), dat-
ed 28-6-2017, the classification will fall under residual entry of Serial
No. 453 of Schedule-III of Notification No. 1/2017-Central Tax
(Rate), dated 28-6-2017 with rate of GST @ 18%. This argument of
the applicant is not valid on the ground that Psyllium Husk Powder
is already covered under Serial No. 73 of the said notification as
mentioned supra.
GST LAW TIMES  16th July 2020  96