Bio-fertilizer under HSN 3101 qualifies as organic manure, with nil GST or 5% tax depending on packaging and branding.

Bio-fertilizer composed of living micro-organisms that promote plant growth was treated as falling within HSN 3101 as organic manure. Under the GST rate entries for that heading, goods not put up in unit containers and not bearing a brand name fall in the nil-rate category, while the same goods when put up in unit containers and bearing a brand name attract 5% GST.

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Issues: Whether bio-fertilizer falls within HSN 3101 as organic manure and, if so, whether bio-fertilizer not put up in unit containers and not bearing a brand name is exempt from GST while goods put up in unit containers and bearing a brand name are taxable at 5%.

Analysis: Bio-fertilizer was treated as a product composed of living micro-organisms that promote plant growth and was held to fall within the standard description of HSN 3101. The ruling also distinguished the GST rate entries applicable to goods under HSN 3101, under which all goods and organic manure not put up in unit containers and not bearing a registered brand name fall in the nil-rate entry, while goods put up in unit containers and bearing a brand name fall in the 5% rate entry.

Conclusion: Bio-fertilizer or organic manure not put up in unit containers and not bearing a brand name is taxable at nil rate, while the same goods when put up in unit containers and bearing a brand name are taxable at 5% GST.

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