GST Classification: Psyllium Husk Powder taxed at 5% under HSN 12119032. Principle of Specificity upheld.

The case involved the classification and applicable GST rate on Psyllium Husk Powder. The authority ruled that Psyllium Husk Powder is classified under HSN 12119032 and attracts a GST rate of 5% (CGST 2.5% + SGST 2.5%) as per Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. Despite the applicant's argument for an 18% GST rate under a residual entry, the authority applied the Principle of Specificity, emphasizing that a specific product entry prevails over a general or residual entry, citing legal precedents.

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Issues Involved: Classification and applicable GST rate on Psyllium Husk Powder.

1. Submission and Interpretation of the Applicant:
The applicant, a manufacturer of Psyllium Husk Powder, seeks clarification on its classification and the applicable GST rate. They argue that their product is not expressly defined in the relevant GST notifications and should thus attract an 18% GST rate under the residual entry (Serial No. 453) of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, which covers goods not specified in Schedules I, II, IV, V, or VI.

2. Questions on Which the Advance Ruling is Sought:
The applicant requests a ruling on whether the GST rate applicable to Psyllium Husk Powder is 5% or 18%.

3. Personal Hearing:
During the personal hearing, the applicant reiterated their submissions and requested an early resolution.

4. Comments of the Jurisdictional Officer:
The jurisdictional officer disagreed with the applicant's classification, asserting that Psyllium Husk falls under HSN 12119032 and not under any residual entry.

5. Findings, Analysis & Conclusion:
The authority examined the nature of Psyllium and its classification under Chapter 12 of the CGST Tariff, 2017, which deals with "Oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder." Psyllium Husk Powder is classified under HSN 12119032. The relevant notification (No. 01/2017-Central Tax (Rate) dated 28.06.2017) lists Psyllium Husk Powder under Serial No. 73 of Schedule-I, attracting a GST rate of 5% (SGST 2.5% + CGST 2.5%).

The authority referenced CBIC clarifications from December 2017, which confirmed that Psyllium Husk falls under HSN 1211 and attracts a 5% GST rate. Despite the applicant's argument for an 18% GST rate under a residual entry, the authority emphasized the Principle of Specificity, which dictates that a specific product entry cannot be overridden by a general or residual entry, as upheld by the Supreme Court in Dunlop India Ltd. and Madras Rubber Factory Ltd. v. UOI & Others.

6. Ruling:
Psyllium Husk Powder, derived from the Psyllium Plant or its parts, is classifiable under HSN 12119032 and attracts a GST rate of 5% (CGST 2.5% + SGST 2.5%) as per Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 (as amended).

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