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.

[Ganeshan Kalyani]

In my view it is exempted from GST as per entry no 34 of Notification no. 2/2017-CGST Rate dated 28.06.2017 as amended from time to time.

[KASTURI SETHI]

The goods are completely covered under Chapter 06 as advised by Sh.Ganeshan Kalyani Ji. Exemption is available. Decorative items added to fresh cut-flower and given the shape of Bouquet are correctly classified under entry no.34 of Notification No.2/17-CT(Rate)

[KASTURI SETHI]

In continuation of my reply above, it is further opined that in case you still feel even 1% doubt, you must opt for filing application with Advance Ruling Authority. This is far cheaper than cost of litigation. I have searched out case laws but could not trace out on this issue even pertaining to pre-GST era. There are case laws on fresh cut-flower pertaining to Customs but not on Bouquet. I mean to say you are eligible for filing application before Advance Ruling Authority. If your turnover is less than ₹ 40 lakhs a year, no need to opt for AAR.

[Ganeshan Kalyani]

Advance ruling is the best option given by the department. It will reduce the conflict at assessment stage. The doubts are clarified at first stage. Yes, one should apply for advance ruling as prevention is better than cure.

[KASTURI SETHI]

As per decision of AAR, Karnataka reported as 2019 (30) GSTL 366 (AAR-GST) = 2019 (10) TMI 1133 - AUTHORITY FOR ADVANCE RULING, KARNATAKA (Advance Ruling no. 87/2019 dated 26.9.19) Para No.6.5 of AAR refers. Applicant :International Flower Auction Bangalore Ltd.

"The "cut-flowers" are covered under the definition of "agricultural produce" as defined in para 2(d) to Notification No.12/17-CT(R) dated 28.6.17.

However, your issue still remains open.

[YAGAY and SUN]

There is no GST applicable on Flower Bouquet as rightly advised by our experts.

AI Summary

GST exemption on flower bouquets when made from fresh cut flowers; seek advance ruling if classification doubt persists.
GST exemption applies to flower bouquets made predominantly from fresh cut flowers with decorative items and packing, as these are classified under Chapter 06 and covered by the GST exemption entry cited by contributors; taxpayers are advised to seek an advance ruling to resolve any remaining classification uncertainty, noting AAR precedent treating cut flowers as agricultural produce.