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of <h1>AAR Gujarat classifies Rapigro as plant growth regulator under TI 38089340, not fertilizer, attracting 18% GST rate</h1> <h3>In Re: M/s. Jivagro Limited</h3> In Re: M/s. Jivagro Limited - 2023 (76) G. S. T. L. 371 (A. A. R. - GST - Guj.) Issues Involved:1. Classification of Rapigro under the Customs Tariff Act, 1975.2. Classification of Rapigro under the Central Goods & Services Tax Act, 2017.3. Rate of tax payable on Rapigro.Summary:Issue 1: Classification of Rapigro under the Customs Tariff Act, 1975The applicant, Jivagro Limited, sought to classify Rapigro under CTH 31010099 as a fertilizer. They argued that Rapigro, being a bio-stimulant registered under the Fertilizer Control Order (FCO), should be considered a fertilizer. The applicant provided detailed reasoning, including the product's chemical composition and its registration as a bio-stimulant. However, the Authority found that Rapigro does not meet the criteria for classification under CTH 3101, as it does not fall within the descriptions provided for animal or vegetable fertilizers. The Authority noted that the product contains organic nutrients obtained through fermentation, which were not disclosed in detail by the applicant.Issue 2: Classification of Rapigro under the Central Goods & Services Tax Act, 2017The Authority examined whether Rapigro could be classified under TI 3507 (Enzymes) or TI 3808 (Plant Growth Regulators). It was determined that Rapigro does not qualify as an enzyme under TI 3507. The Authority further analyzed the characteristics and technical literature of Rapigro, noting that it acts as a plant growth regulator by affecting the physiological processes of plants when applied in low concentrations. Consequently, the Authority concluded that Rapigro should be classified under TI 38089340 as a plant growth regulator.Issue 3: Rate of tax payable on RapigroBased on the classification under TI 38089340, the applicable GST rate for Rapigro was determined to be 18% (9% CGST and 9% SGST) as per SI. No. 87, Schedule III, notification No. 1/2017-CT (Rate) dated 28.06.2017.Ruling:1. The classification of Rapigro under the Customs Tariff Act, 1975, and the Central Goods & Services Tax Act, 2017, is under 38089340 as a 'plant growth regulator.'2. The rate of tax applicable on Rapigro is 18% (9% CGST and 9% SGST).
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