Raw coir pith is taxable under Chapter 5305 when not converted into compost, despite being supplied in blocks or loose form.

Raw coir pith, supplied either in loose powder form or compressed into blocks or briquettes without chemicals, was held to fall under Chapter 5305 as a taxable GST entry. The product was treated as the non-fibrous residue obtained from coconut husk after extraction of coir fibre, and not as the exemption-covered commodity. The exemption entry applied only to coconut coir fibre, and a later amendment extended relief only to specified coir pith compost. Because the applicant's product had not undergone composting, it was not covered by the exemption and remained taxable at 2.5% CGST and 2.5% SGST.

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Issues: Whether coir pith in raw form, supplied either in loose powder form or compressed into blocks or briquettes without addition of chemicals, is classifiable under Chapter 5305 and liable to GST at 2.5%.

Analysis: The product was found to be the non-fibrous material obtained from coconut husk after extraction of coir fibre. The relevant tariff entry under Chapter 5305 covered coir pith in processed value-added form and in loose form for use in horticulture or agriculture. The exemption entry initially covered only coconut coir fibre, and a later amendment extended exemption only to coir pith compost in specified circumstances. Since the applicant's product was raw coir pith, either loose or compressed, and had not undergone composting, it did not fall within the exemption entry. It was therefore appropriately classifiable under the taxable entry in Schedule I.

Conclusion: Raw coir pith supplied in loose form or compressed into blocks or briquettes without chemicals is taxable at 2.5% CGST and 2.5% SGST.

Ratio Decidendi: Raw coir pith that has not been converted into compost is classifiable under the taxable GST entry for Chapter 5305 and is not covered by the exemption meant for coconut coir fibre or specified coir pith compost.

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