Page 98 - GSTL_16th July 2020_Vol. 38_Part 3

336 GST LAW TIMES [ Vol. 38
issue raised by the applicant is neither pending for proceedings nor proceedings
were passed by any authority. Based on the above observations, the applicant is
admitted to pronounce advance ruling.
1. Submission and interpretation of the applicant :
• The applicant is engaged in manufacture of hair dye powder in
Sojat city and is having GST Registration Number
08AAUHS7425M1Z6. The applicant intends to manufacture me-
handi/henna powder in future and so wish to seek clarification on
the classification and rate of GST applicable on the mehandi/henna
powder.
• The classification dispute as regards mehandi/henna powder was
prevalent since Central Excise Laws and the confusion still persists
in GST regime. The amendments made in the notifications specify-
ing rate of GST has created dispute as regards classification of hen-
na powder in the GST regime.
• Therefore, the present application for advance ruling is being filed
to confirm the classification of henna powder and the rate of GST
applicable on it.
• The present application for advance ruling has been filed to confirm
the classification of henna powder and the rate of GST applicable
thereon. In order to arrive at perfect conclusion, it is pertinent to
make reference to various aspects that aid in the classification of
their product henna powder under GST regime.
• At the outset, it is worth noting that while filing application for reg-
istration under GST Laws, the list of goods mentions the Chapter 14
for henna powder. The HSN Code No. 1404 10 19 specifically men-
tions “Henna Powder” and so the applicant has mentioned the clas-
sification of their product henna powder under Chapter 14 and ac-
cordingly, the rate of GST applicable is 5%. The applicant submits
that when the GST portal itself specifies the HSN code for henna
powder as 1404 10 19, there is no doubt that the said product is cov-
ered under Chapter 33. Therefore, the classification of the product
mehandi/henna powder should be confirmed under HSN Code
1404 10 19. The screenshot of the registration application is en-
closed.
• In continuation to the above, reference may be made to amendment
made vide insertion of Serial No. 78A by Notification No. 6/2018-
Central Tax (Rate), dated 25-1-2018 which amended the principal
Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 which
reads as follows :-

78A 1404 or 3305 Mehandi paste in cones

• The applicant submits that after the above cited amendment, it is
being interpreted that the above amendment is specific for Mehandi
paste in cones and cannot be considered with reference to mehandi
powder. In this regard, the applicant submits that the rate of GST
applicable on henna powder was 5% since inception and this fact is
confirmed by the Agenda Item No. 10 of the issues recommended
by the Fitment Committee for the consideration of the GST Council.
GST LAW TIMES  16th July 2020  98