TaxTMI 
TaxTMI 
2026 (6) TMI 244
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut in the ordinary course of business. The applicant is also maintaining a warehouse at its place of business which is duly registered under the Goods and Services Tax Law bearing GSTIN 24BEGPP6511L2ZB with effect from 01.02.2023. The applicant also holds a valid license as a "General Commission Agent" issued by the Agricultural Produce Market Committee, Sidhpur, License No. 163. 3. The applicant proposes to undertake the following activities in the ordinary course of business: i. Procurement of Psyllium seeds (Isabgol) directly from farmers through Agricultural Produce Market Committee (APMC) auctions. ii. Storage of such seeds in godowns without any processing. iii. Supply of the said Psyllium seeds (Isabgol), without any processing, to Isabgol processing units engaged in extraction of Psyllium (Isabgol) husk. iv. The commodity proposed to be traded is raw Psyllium seeds (Isabgol) that will be procured from the farmers by APMB after threshing (operation of separating the grains from the plants done by the farmers, without any alteration in form, character or composition). v. At no stage, either prior to purchase from farmers or prio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lants. Specifically, Psyllium seeds (Isabgol) are covered under tariff item 12119013. • Chapter 12 expressly covers seeds and other agricultural produce and Psyllium seeds being seeds obtained directly from cultivation and supplied without processing, squarely fall under this Chapter. • The following entries are relevant for the present application. 1. As per Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 87 (covering HSN 1211) which reads as 'Plants and parts of plants (Including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, fresh or chilled, exempts the product from GST. 2. As per Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 77 (covering HSN 12) reads as 'All goods of seed quality' exempts the product from GST. 3. As per Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 71 (covering HSN 1211) reads as 'Plants and parts of plants (Including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r sale through auction; that at the time of sale in APMC mandi, the psyllium seeds remain whole and intact, retain natural moisture content and are not subjected to drying, freezing, grading, roasting, polishing, crushing, or any chemical or mechanical treatment. Thus at the primary sale stage, the Psyllium seeds (isabgol) are unprocessed agricultural produce. • The applicant proposes to purchase Psyllium seeds (isabgol) from farmers strictly through the APMC auction mechanism and the same will be procured in the same condition in which they are brought by farmers, without any intervention or alteration and after procurement, the applicant will store the psyllium seeds (isabgol) in dry and ventilated godowns to preserve their natural condition; that no artificial or intentional drying, no dehydration, no freezing and no processing of any kind will be undertaken at any stage by the applicant; that the psyllium seeds (isabgol) shall remain in the same natural form so harvested by the farmers, without any change or alteration, from the stage of procurement up to their supply to the processing unit; that the applicant supplies psyllium seeds (isabgol) as raw material to is....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ne and no mechanical clearing, grading, or polishing is undertaken. 9. Supply by APMC agent to processing unit: Seeds are supplied as received without drying, dehydration, freezing, grading, polishing, roasting, milling, crushing or any chemical treatment. The applicant supplies Psyllium seeds without undertaking husk separation & husk separation is done mechanically by the processing units. • Psyllium seeds (Isabgol) are plants or parts of plants (including seeds) used primarily in pharmacy as the seeds constitute the source material for extraction of Psyllium husk which is a recognised pharmaceutical and nutraceutical ingredient. When supplied in fresh condition, they are exempted under Sr. No. 87 of Notfn. No. 10/2025-Central Tax (Rate) dated 17.09.2025. • The term 'fresh' is not defined in GST law, however, fresh agricultural produce refers to goods supplied in the same state as harvested without undergoing any drying or freezing process. In present case, no artificial drying or freezing process is carried out. Natural low moisture content is an inherent characteristic of Psyllium seeds and cannot be equated with 'dried' goods. • ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stated in the application. During the course of hearing, the representatives gave a copy of Circular No. 163/19/2021-GST dated 06.10.2021. Discussion and findings 8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/views in respect of question on which the advance ruling is sought. 10. The applicant has submitted that they propose to be engaged in trading business of Psyllium seeds, commonly known as Isabgol, to be purchased from farmers through auctions conducted by Agricultural Produce Market Committees (APMCs) in the State of Gujarat, proposes to supply such Psyllium seeds (Isabgol), without undertaking any processing or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to flours and meals which have been partially defatted or defatted and wholly or partially defatted with their original oils. It does not, however, apply to residues of headings 2304 to 2306. 3. For the purposes of heading 1209, beet seeds, grass and other herbage seeds, seeds of ornamental flowers, vegetable seeds, seeds of forest trees, seeds of fruit trees, seeds of vetches (other than those of the species Vicia faba) or of lupines are to be regarded as "seeds of a kind used for sowing". Heading 1209 does not, however, apply to the following even if for sowing: (a) leguminous vegetables or sweet corn (Chapter 7); (b) spices or other products of Chapter 9; (c) cereals (Chapter 10); or (d) products of headings 1201 to 1207 or 1211. 4. Heading 1211 applies, inter alia, to the following plants or parts thereof: basil, borage, ginseng, hyssop, liquorice, all species of mint, rosemary, rue, sage and wormwood. Heading 1211 does not, however, apply to: (a) medicaments of Chapter 30; (b) perfumery, cosmetic or toilet preparations of Chapter 33; or (c) insecticides, fungicides, herbicides, disinfectants or si....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Tuber, Stolon and rhizome : 1211 90 41 - - - - Belladona roots 1211 90 42 - - - - Galangal rhizomes and roots 1211 90 43 - - - - Ipecac dried rhizome and roots 1211 90 44 - - - - Serpentina roots (rowwalfia serpentina and other species of rowwalfias) 1211 90 45 - - - - Zedovary roots 1211 90 46 - - - - Kuth root 1211 90 47 - - - - Sarasaparilla roots 1211 90 48 - - - - Sweet flag rhizomes 1211 90 49 - - - - Other - - - Whole Plant, Aerial Part, Stem, Shoot and Wood : 1211 90 51 - - - - Sandalwood chips and dust 1211 90 52 - - - - Vinca rosea herbs 1211 90 53 - - - - Mint 1211 90 54 - - - - Agarwood 1211 90 55 - - - - Chirata 1211 90 56 - - - - Basil, hyssop, rosemary, sage and savory 1211 90 57 - - - - Ashwagandha (Withania somnifera) 1211 90 58 - - - - Giloy (Tinospora cordifolia) 1211 90 59 - - - - Other 1211 90 90 - - - Other HSN Notes to Heading 1211 12.11 - Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h wood is excluded (Chapter 44). Certain plants or parts of plants (including seeds or fruits) of this heading may be put up (e.g., in sachets) for making herbal infusions or herbal "teas". Such products consisting of plants or parts of plants (including seeds or fruits) of a single species (e.g., peppermint "tea") remain classified in this heading. However, the heading excludes such products consisting of plants or parts of plants (including seeds or fruits) of different species (whether or not incorporating plants or plant parts of other headings) or consisting of plants or parts of plants of a single or of different species mixed with other substances, such as one or more plant extracts (heading 21.06). It should also be noted that the following products fall in headings 30,03, 30.04, 33.03 to 33.07 or 38.08, as the case may be : (a) Products of this heading, unmixed, but put up in measured doses or in forms or packings for retail sale, whether for therapeutic or prophylactic purposes, or put up for retail sale as perfumery products or as insecticidal, fungicidal or similar products. (b) Products which have been mixed for use for the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aqueous extract) is classified in heading 13.02.) Centauria (Elythraea centaurium) : herbs. Cevadilla (Sabadilla) (Schoenocaulon officina/e): seeds. Chamomile (Matricaria chamomilla, Anthemis nobilis) : flowers. Chenopodium : seeds. Cherry : stalks. Cherry laurel (Pnmus laurocerasus) : berries. Cinchona : bark. Clove (Cmyophyllus aromaticus) : bark and leaves. Coca (Elythroxylon coca and Elythroxylon truxi/lense) : leaves. Cocculus indicus (Indian berry) (Anamirta paniculata) : fruit. Cocillana (Gumea rusbyi) : bark. Colchicum (Colchicum autumnale): corms and seeds. Colocynth (Citmllus co/ocynthis): fruit. Comfrey (Symphytum officinale) : roots. Condurango (Marsdenia condurango) : bark. Couchgrass (Triticum) (Agropyrum repens) : roots. Cube (barbasco or timbo) (Lonchocmpus nicou) : bark and roots. Cubeb (Cubeba officina/is Miquel or Piper cubeba): powder. Damiana (Turnera diffusa): leaves. Dandelion (Taraxacum officinale): roots. Datura metel : leaves and seeds. Derris (or tuba) (Derris el/iptica and Derris trifoliata): roots. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iferum) : heads (unripe, dried). Pulsatilla (Anemone pulsatilla) :herbs. Pyrethrum (Chi)'Santhemum cinerariaefolium): leaves, stems and flowers. Pyrethrum (Anacyc/us pyrethrum):roots. Quassia (Quassia amara and Picraena excel sa) : wood and bark. Quince : seeds. Rhatany (Krameria triandra) : roots. Rhubarb (Rheum officina/e): roots. (Rose : flowers. Rosemary (Rosmarilws officina/is) : herbs, flowers and leaves. Rue (Rut a graveolens) : leaves. Sage (Salvia officinalis) : leaves and flowers. St. Ignatius beans (Stlychnos ignatii). Sandalwood : chips (white and yellow). Sarsaparilla (Smilax) : roots. Sassafras (Sassafras officina/is) : bark, roots and wood. Scammony (Convolvulus scammonia): roots. Senega (Polygala senega):roots. Senna (Cassia acutifo/ia and Cassia angustifolia): pods and leaves. Slippery elm (Ulmus fi!lva) : bark. Solanum nigrum. Squill (Urginea maritima, Urginea scilla): bulbs. Stramonium (Datura stramonium) : leaves and tops. Strophanthus (Strophanthus kombe) : seeds. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 77 (covering HSN 12) reads as 'All goods of seed quality' exempts the product from GST. 3. As per Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 71 (covering HSN 1211) reads as 'Plants and parts of plants (Including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered." GST rate here is 5%. 15. We find that the applicant has detailed the entire process followed for obtaining Psyllium seeds in their submission starting with: (i) cultivation by farmers followed by (ii) harvesting of the plants, (iii) threshing of the plants in a thresher through which psyllium seeds are obtained, (iv) collecting and packing of seeds by farmers in PP bags, (v) transport of seeds to APMC mandis through tractors, carts or trucks, (vi) primary sale to APMC through auction in APMC mandis, (vii) procurement of psyllium seeds by APMC agent from farmers through APMC auctions in the same condition as brought by farmers, (viii) Storage of seeds in dry and ventilated godowns to p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rocess is carried out. Natural low moisture content is an inherent characteristic of Psyllium seeds and cannot be equated with 'dried' goods. 17. The applicant has also made a reference to FAQ F.No.332/2/2017-TRU dated December, 2017, wherein it is mentioned that Isabgol seeds are classifiable under heading 1211, fresh Isabgol seeds attract NIL rate of GST, dried Isabgol seeds attract 5% GST & Isabgol husk falls under heading 1211 attract GST rate of 5%. The applicant has also referred to Circular No. 163/19/2021-GST dated 06.10.2021 wherein clarification regarding GST rates and classification(goods) (based on the recommendation of the GST Council in its 45th meeting held on 17.09.2021 at Lucknow) has been provided. The representatives of the applicant have submitted a copy of the said circular during the course of personal hearing. They have also referred to para 3.2 of the said Circular stating that the process of drying is discussed in para 3.2. of Circular No. 169/19/2021-GST dated 06.10.2021. 18. Since the rate of GST and the Notifications applicable to the Psyllium seeds supplied by the applicant is mainly based on whether the product is fresh OR chilled OR frozen OR dr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned therein that exemption from GST to fresh fruits and nuts covers only such products which are not frozen or dried in any manner as stated above or otherwise processed. Supply of dried fruits and nuts, falling under heading 0801 and 0802 attract GST at the rate of 5%/12% as specified in the respective rate Schedules. Since the rate of GST and the Notification in which the Psyllium seeds supplied by the applicant is mainly based on whether the product is fresh OR chilled OR frozen OR dried, we find that the aforementioned analogy would be applicable in toto in the present case. 20. From the submission of the applicant, we find that the Psyllium seeds (isabgol) to be obtained by them from farmers through the APMC auction mechanism will be procured in the same condition in which they are brought by farmers, without any intervention or alteration and after procurement, will be stored in dry and ventilated godowns to preserve their natural condition and that no artificial or intentional drying, no dehydration, no freezing and no processing of any kind will be undertaken at any stage by the applicant i.e. the psyllium seeds (isabgol) shall remain in the same natural form so harveste....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2017-Central Tax (Rate), dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council, hereby notifies the rate of central tax of- (i) 2.5 per cent. in respect of goods specified in Schedule I; (ii) 9 per cent. in respect of goods specified in Schedule II; (iii) 20 per cent. in respect of goods specified in Schedule III; (iv) 1.5 per cent. in respect of goods specified in Schedule IV; (v) 0.125 per cent. in respect of goods specified in Schedule V; (vi) 0.75 per cent. in respect of goods specified in Schedule VI, and (vii) 14 per cent. in respect of goods specified in Schedule VII, appended to this n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to this notification, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule, from the whole of the central tax leviable thereon under section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017). SCHEDULE S.No. Chapter/Heading/Sub-heading/ Tariff item Description of goods (1) (2) (3) 77 12 All goods of seed quality 87 1211 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, fresh or chilled 25. We find that the aforementioned Notification covers a comprehensive list of products/items which are exempt from GST. On going through the aforementioned Notification, we find that there are two entries i.e. Entry No. 77 which reads as "All goods of seed quality" covering Chapter 12 and the other i....