GST on Flower Bouquets

[CA.Mohammed Lakkadsha]

Whether GST is applicable on Flower Bouquets when Bouquet are made from fresh cut flowers and certain decorative items and packing paper is used in making the Bouquets.

AI Summary

Flower Bouquets from Fresh Cut Flowers Exempt from GST Under Notification No. 2/2017-CGST, Entry 34. A discussion on the applicability of GST on flower bouquets made from fresh cut flowers and decorative items concluded that such bouquets are exempt from GST. This conclusion is based on entry no. 34 of Notification No. 2/2017-CGST Rate, which classifies these goods under Chapter 06. Participants recommended seeking an advance ruling from the Authority for clarification if any doubt persists, as it is a cost-effective alternative to litigation. The discussion referenced a decision by the Karnataka AAR, which recognized 'cut-flowers' as 'agricultural produce,' further supporting the exemption.