Classification of 'Gomaya Samidha - Patanjali Ayurved ka Utpad' for GST: Not Exempt, Taxable at 5%

The product 'Gomaya Samidha - Patanjali Ayurved ka Utpad' is classified as organic manure under Chapter Heading 3101. It does not qualify for GST exemption under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate. However, it is subject to GST at 5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate. Additionally, it does not fall under the GST @5% category under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate.

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Issues Involved:
1. Classification (HSN Code) for 'Gomaya Samidha'.
2. Exemption from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate.
3. Applicability of GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate.
4. Applicability of GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate.

Detailed Analysis:

1. Classification (HSN Code) for 'Gomaya Samidha':
The applicant described 'Gomaya Samidha' as a mixture of 95% cowdung and 5% herbs. The product is intended for use in performing 'hawan' (Yajna). The Authority concluded that the product is not purely cowdung due to the addition of herbs, thus changing its characteristics. The product is classified under Chapter Heading 3101, specifically under sub-heading 31010099, which covers organic manure. The Authority stated, "Cowdung is used as organic fertilizer for agriculture. If 5% herbs is mixed with it even then it does not lose its characteristics of being an organic manure."

2. Exemption from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate:
The Authority examined whether 'Gomaya Samidha' qualifies for GST exemption under S. No. 108 or S. No. 113:
- S. No. 108: The product must be unbranded to qualify for exemption. The Authority determined that 'Gomaya Samidha' is branded as "Patanjali Ayurved ka utpad," making it ineligible for exemption under this entry.
- S. No. 113: This entry covers "Firewood or fuel wood." The Authority found that 'Gomaya Samidha,' made from cowdung and herbs, does not qualify as firewood or fuel wood, stating, "Cowdung will always remain cowdung irrespective of the fact that in what form it is supplied."

3. Applicability of GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate:
The Authority examined whether 'Gomaya Samidha' falls under S. No. 182, which covers "All goods i.e. animal or vegetable fertilisers or organic fertilisers put in unit containers and bearing a brand name." The Authority concluded that 'Gomaya Samidha' fits this description, as it is an organic manure sold in unit containers with a brand name. Thus, it is leviable to GST at 5%.

4. Applicability of GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate:
The Authority examined whether 'Gomaya Samidha' qualifies as "Hawan Samagri" under S. No. 263A. The Authority found that 'Gomaya Samidha' is not recognized as 'Hawan Samagri' in common parlance or trade. The product is described as cowdung mixed with herbs, not a complete 'Hawan Samagri.' The Authority stated, "Cowdung may be a part of Hawan Samagri but it itself is neither a complete Hawan Samagri nor it is recognised like that."

Ruling:
1. 'Gomaya Samidha - Patanjali Ayurved ka Utpad' is classified as organic manure under Chapter Heading 3101.
2. It is not exempt from GST under S. No. 108 or S. No. 113 of Notification No. 2/2017 - Central Tax Rate.
3. It is leviable to GST @5% under S. No. 182 of Schedule I to Notification No. 1/2017 - Central Tax Rate.
4. It is not leviable to GST @5% under S. No. 263A of Schedule I to Notification No. 1/2017 - Central Tax Rate.

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