Human Hair Auctions Exempted from GST: Landmark Ruling Invalidates 18% Tax Requirement on Hair Trade

HC ruled that GST cannot be levied on human hair auctions, invalidating a tender notification's 18% GST requirement. Based on government finance notifications and departmental circulars, the court determined that human hair collection is exempt from GST. The petition was disposed of, striking down the contested clause without imposing costs.

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The Madras High Court, through Justice N. Anand Venkatesh, addressed a writ petition challenging clause 23 of a tender notification dated 22.05.2025, which mandated payment of 18% GST by tender participants. The Court noted the Government of India, Ministry of Finance notification dated 28.06.2017 granting exemption from GST on human hair (unworked or waste) and a circular from the Commissioner of HR&CE dated 14.05.2025 confirming no GST is payable on auctions related to human hair collection. Given these authoritative pronouncements, the Court held that "collection of human hair does not attract any GST" and therefore, the 2nd respondent cannot insist on 18% GST payment from auction participants. The Court interfered with clause 23 accordingly and disposed of the petition with no costs.

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