Mehandi and Mehandi Cone GST Rate Confusion

[Guest]

Dear Sir,

As Mehandi and Mehandi Cone is derived from Henna Plant hence both should be considered as Vegetable product.

Also it is covered under Agro Industry which again denotes the same that both the products is a Vegetable product.

With the above two definitions both should clearly come under HSN 1404.

Can you please help me in getting the actual GST Rate on these products as it is not mentioned clearly anywhere and I am finding it difficult to deal with it.

With Regards,

ShubhaDeep Roy

[Rajagopalan Ranganathan]

Sir,

According to Schedule III Sl. No. 4 & 5 of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 as amended "Bidi wrapper leaves (tendu)" falling under Heading No. 1404 90 10 and "Indian katha" falling under Heading No. 1404 90 50 are liable to gst @ 9%.

According to Schedule I Sl. No. 78 of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 as amended " Vegetable products not elsewhere specified or included such as, Cotton linters, Soap nuts, Hard seeds, pips, hulls and nuts, of a kind used primarily for carving, Rudraksha seeds [other than bidi wrapper leaves (tendu), betel leaves, Indian katha, coconut shell, unworked] are chargeable to gst @ 2.5%.

In my opinion Mehandi and Mehandi Cone will fall under heading 1404 will attract gst @2.5% since it is vegitable product not elsewhere specified or included.

 

[Rajagopalan Ranganathan]

Sir,

In continuation of my reply dated 16.11.2017 betal leaves falling under heading 1404 90 40 will attract 'Nil' rate of gst vide Sl. No. 93 of the Schedule appended to Notification No. 2/2017-Central Tax (Rate) dated 28.6.2017 as amended

[DR.MARIAPPAN GOVINDARAJAN]

Nice explanation by Renganathan Sir

[KASTURI SETHI]

In support of the reply of Sh.Rangnathan, Sir, here is case law which clears the classification of Heena Cone under HSN 1404. Though it pertains to pre-GST era still it is relevant to post here on the issue.

2015 (328) E.L.T. 468 (Tri. - Del.) = NEHA HERBALS PVT. LTD.  Versus COMMISSIONER OF CENTRAL EXCISE, DELHI-I [ 2015 (12) TMI 10 - CESTAT NEW DELHI ]

[Ganeshan Kalyani]

The classification of pre GST era holds good in GST. Notification 1/2017-CT (Rate) consists of HSN wise tax rate.

AI Summary

Goods classification under HSN 1404: mehandi and mehandi cones treated as vegetable products and attract reduced GST rates. Mehandi and mehandi cones, as plant derived vegetable products, are assessed under the HSN heading for vegetable products; items specifically listed (for example bidi wrapper leaves and Indian katha) are treated distinctly, whereas a residual category 'vegetable products not elsewhere specified or included' covers other plant-derived goods. The contributor and forum responses conclude that mehandi and mehandi cones fall into this residual category and therefore attract the lower GST rate applicable to goods not elsewhere specified, with pre GST classification precedent cited in support.