TaxTMI 
TaxTMI 
2026 (8) TMI 1361
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....GST Act, 2017, this Advance Ruling pronounced under Chapter XVII of the Acts shall be binding only: (a) on the applicant who had sought it in respect of any matter referred to in Section 97(2) of the Acts; and (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the CGST Act, 2017 and the RGST Act, 2017, this Advance Ruling shall be binding unless the law, facts or circumstances supporting the original ruling have changed. 4. Under Section 104(1) of the CGST Act, 2017 and the RGST Act, 2017, where the Authority finds that the Advance Ruling has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of the Acts or the Rules made thereunder shall apply to the applicant as if such Advance Ruling had never been made. 5. Any appeal against this Advance Ruling shall lie before the Appellate Authority for Advance Ruling, Rajasthan, in terms of Section 100 of the CGST Act, 2017 and the RGST Act, 2017. Such appeal shall be filed within thirty days from the date on which the ru....
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.... subsequent sale, do the Psyllium seeds (Isabgol) undergo any processing or treatment. There is no other industrial activity which alters the form, character, or essential nature of the seeds. The seeds remain in the exact same condition from the point of harvest to the purchase by the trader from farmers, and up to the final point of supply to the processing units. There is no intervention or value addition after harvesting. • In established trade and agricultural practice, Psyllium seeds (Isabgol) are simply known as "Isabgol seeds" and there is no such recognized commercial or agricultural distinction between fresh, dried, or frozen Psyllium seeds; the terms "fresh", "dried", or "frozen" for Psyllium seeds arise only from GST circulars and FAQs and not from actual agricultural or market practice. Hence, the distinction between "Fresh or Chilled" and "Dried or Frozen" might be required for other such agricultural seeds, but in the case of Psyllium seeds, they are always "fresh" and are never traded in a "Dried or Frozen" condition. B. INTERPRETATION AND UNDERSTANDING OF APPLICANT ON QUESTION RAISED (IN BRIEF) (i) Psyllium seeds (Isabgol) are classifiable under ....
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....e Central Goods and Services Tax Act, 2017 (12 of 2017). 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 (iv) As per Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 77 (covering HSN 12) which reads as 'All goods of seed quality', exempts the product from the levy of Goods and Services Tax. (v) As per Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025, Entry No. 71 (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, frozen or dried, whether or not cut, crushed or powdered', prescribes a GST rate of 5%. (vi) The aforementioned Notification covers a comprehensive list of products/items which are exempt from GST. Wherin two entries i.e. Entry No. 77 which reads as "All goods of seed quality" covering Chapter 12 and the ot....
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....purchase such Psyllium seeds (Isabgol) directly from farmers through APMC auctions without any processing, and further such seeds will be supplied directly to the processing units; the applicant will be engaged in mere trading activity and will not undertake any activity that alters the form, character, composition, or essential nature of the Psyllium seeds (Isabgol) at any stage. (xv) Psyllium (Plantago ovata) is cultivated by farmers following standard agricultural procedures, and after the crop matures, farmers remove the whole plant from the field and the harvested plants are subjected to threshing, at agricultural farm itself whereby seeds are separated from the spikes, straw, and dust; threshing is an integral and unavoidable agricultural activity carried out to separate the seeds from the plant and does not amount to processing or manufacture as it is a natural part of the harvesting process; the output at this stage is raw Psyllium seeds (Isabgol), fully retaining their original botanical and physical characteristics. (xvi) After threshing, the psyllium seeds (Isabgol) are packed in gunny bags in the same condition as harvested and transported by farmers to APMC mandi....
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....duct, whereas the seeds remain agricultural raw material; psyllium seeds (Isabgol) shall be traded exclusively as agricultural produce and shall be supplied only as raw material to processing units for further processing, namely Psyllium (Isabgol) husk; the seeds in the form proposed to be supplied by the applicant, shall have no direct consumable or therapeutic use and shall be marketed or sold as a raw material. (xix) Further the Agricultural Produce Market Committee Secretary (APMC) under Office of Krishi Upaj Mandi Samiti, Nokha Bikaner Road, Nokha (Bikaner), Rajasthan Telephone: Office - 01531-220034 Email: [email protected] Attached as Annexture-1 Clarification regarding GST applicability on Isabgol and whether it falls under the category of Fresh Isabgol. 1. Clarification With reference to the above subject, it is clarified that Isabgol (Psyllium Husk) is an agricultural produce and its cultivation and marketing process is purely agricultural in nature. The details are as follows: 2. Agricultural Production Isabgol is an agricultural crop cultivated by farmers in their fields using traditional agricultural practices. The cultivation p....
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....e agricultural farm itself where seeds are separated from spikes, straw, and dust. Loose straw, chaff, and visible dust are separated during threshing and no grading, polishing, or chemical treatment is done through any machinery, and seeds are successfully obtained. Thereafter, the seeds obtained from the threshing process are collected and packed in ordinary gunny bags. No chemical treatment, artificial preservation, dehydration, freezing, roasting, polishing, crushing, grading any machinery, or any other industrial process is carried out by the farmers. The seeds remain in their original agricultural condition exactly as they emerge from the harvesting and threshing process. d. Packing by farmers: Seeds obtained after threshing are directly collected and packed in jute bags or PP bags without any chemical or thermal treatment. As mentioned in above photos e. Transportation to mandi by farmers: Packed bags are transported by tractors, carts, or trucks to the nearest APMC mandi for sale. f. Primary sale to APMC: Psyllium seeds (Isabgol) are sold through auction in APMC mandis, and the mandi only facilitates regulated sale and does not involve any process....
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....in the same natural form in which it is harvested from the fields. (xxv) It is a settled principle of classification that where a term is not specifically defined under the statute, its meaning must be understood in accordance with common trade parlance and commercial understanding. In ordinary commercial language, fresh agricultural produce refers to goods that continue to remain in the same condition as harvested and have not been subjected to any intentional drying, freezing, preservation, or processing activity. (xxvi) In the present case, the Applicant neither undertakes any artificial drying process nor carries out any activity intended to remove the natural moisture content of the seeds. Any natural reduction of moisture that may occur due to passage of time or ordinary storage conditions is an Inherent characteristic of agricultural produce and cannot convert fresh agricultural goods into dried goods. (xxvii) The Customs Tariff specifically recognizes Psyllium Seeds under Tariff Item 1211 90 13. The tariff itself acknowledges that Psyllium Seeds are plants or parts of plants used primarily for pharmaceutical purposes. There is therefore no dispute regarding the cla....
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.... by the cultivator to make it marketable. The said ruling, though not binding, has significant persuasive value and supports the contention of the Noticee. The relevant portion of the ruling is as under: Hold that Question 1: Whether Psyllium Seeds (Isabgol) supplied in their natural, raw and unprocessed form as procured through Agricultural Produce Market Committee (APMC) auctions directly from farmers, without undergoing any drying, freezing, crushing or other processing qualifies as "fresh" Isabgol seeds and are exempted under Entry 87 (HSN 1211) of Notification No. 10/2025- Central Tax (Rate) dated 17.09.2025 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"? Answer 1: Yes. Psyllium Seeds (Isabgol) supplied in their natural, row and unprocessed form as procured through Agricultural Produce Market Committee (APMC) auctions directly from farmers, without undergoing any drying, freezing, crushing or other processing qualifies legally as "fresh" Isabgol seeds and are fully exempted from GST under Entry 87 (HSN 1211) of Notification No....
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....addition, to Isabgol processing units and the said activities are proposed to be carried out in the ordinary course of business. The applicant is duly registered under the Goods and Services Tax Law bearing GSTIN 08AATPJ6117E1ZL with effect from 01.07.2017. Question Raised : 1. Whether Psyllium seeds(Isabgol) supplied in their natural, raw and unprocessed form as procured through Agricultural Produce Market committee(APMC) auctions directly from farmers, without undergoing any drying, freezing, crushing or other processing qualifies as "fresh" Isabgol seeds and are exempted under Entry 87(HSN 1211) of Notification No. 10/2025-Central Tax(Rate) dated 17.09.2025 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"? 2. Alternatively, whether Psyllium Seeds(isabgol) as discussed above qualifies as "goods of seed quality" and are exempt from GST under Entry 77(HSN 12) of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025? LEGAL OPINION I. Scope of Examination The present application raises a limited but significant ....
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....e basis of the statutory description contained in Entry No. 87. IV. Meaning of the expression "Fresh" The CGST Act, the Notifications and the Customs Tariff do not define the expression "fresh." In the absence of a statutory definition, the expression must receive its ordinary commercial meaning having regard to the context in which it is used. Entry No. 87 exempts: "Plants and parts of plants (including seeds and fruits) ... fresh or chilled." Simultaneously, Entry No. 71 of Notification No. 09/2025 taxes identical goods when supplied in frozen or dried condition. The legislature has consciously recognised four distinct physical conditions of the same commodity: • Fresh • Chilled • Frozen • Dried Therefore, these expressions must be treated as mutually exclusive. Consequently, every harvested seed cannot automatically be regarded as "dried". Such an interpretation would render the distinction created by the legislature otiose and defeat the scheme of the notifications. V. Whether the applicant's goods can be regarded as "dried" The ....
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....cability of Entry No. 87 The following ingredients are required to attract Entry No. 87: (i) the goods must be plants or parts of plants including seeds; (ii) such goods must be of a kind used primarily in pharmacy or similar purposes; (iii) such goods must be supplied in fresh or chilled condition. All three conditions stand satisfied in the present case. Psyllium Seeds are specifically recognised under Heading 1211, are admittedly used in the pharmaceutical and nutraceutical industry for manufacture of Isabgol products, and, based on the factual matrix placed before this Authority, are supplied in their natural harvested condition without undergoing drying or any other process that would deprive them of their character as fresh goods. Therefore, the goods squarely fall within Entry No. 87 of Notification No. 10/2025- Central Tax (Rate). IX. Alternative Claim under Entry No. 77 The applicant has alternatively invoked Entry No. 77 relating to "goods of seed quality." In my considered opinion, this contention is unnecessary and legally unsustainable. Entry No. 77 is a general exemption....
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.....2026. Mr. Ujjaval Sharma (C.A.) Authorized Representative appeared for personal hearing. He reiterated the submission already made by him. F. DISCUSSIONS AND FINDINGS 1. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the "GST Act". 2. 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 and the comments of the jurisdictional officer. 3. The applicant has submitted that they are engaged in the trading business of Psyllium seeds, ....
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.... 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 similar products of heading ....
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....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 insecticidal, fungicidal or similar purposes, fresh, chilled, frozen or dried, whether or not cut, crushed or powdered. 1211.20 - Ginseng roots; 1211.30 - Coca leaf; 1211.40 - Poppy straw; 1211.50 - Ephedra; 1211.90 - Other This heading covers vegetable products of a kind used primarily in perfumery, in pharmacy or medicine, or for insecticidal, fungicidal, parasiticidal or similar purposes. They may be in the form of whole plants, mosses or lichens, or of parts (such ....
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.... the end of Chapter 29. 6. We have gone through the Chapter Notes of Chapter 12, products/articles mentioned under tariff heading 1211 as well as the HSN Notes to heading 1211. We find that the product "Psyllium seeds" appears at sub-heading 1211 9013. The name against the sub-heading is mentioned as Psyllium seed (Isobgul), Further, the name Plantago psyllium : herbs and seeds also finds mention under the HSN notes of heading 1211. We therefore, find that Psyllium seeds are correctly classifiable under Sub-heading 1211 9013 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). 7. When it comes to decide the rate of tax on Psyllium Seeds, the applicant has submitted that there are three entries relevant for the present application which are as under: 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, En....
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....lied by applicant at a later stage after purchase from farmers through APMC qualify as "fresh or chilled" or "frozen or dried" so as to apply rate of tax. 9. The applicant has further submitted that the Psyllium seeds (isabgol) from farmers will be obtained strictly through the APMC auction mechanism and 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 processing of husk from the seeds will be carried out only by the processing units, where mechanical separation of the husk from the seed takes place resulting in Psyllium (isabgol) husk, which is a processed product; that the husk is a processed product, whereas the ....
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....now) 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.163/19/2021-GST dated 06.10.2021. 11. 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 dried", we find it prudent to refer to Circular No.163/19/2021-GST dated 06.10.2021 wherein it has been discussed threadbare as to what a fresh product OR dried product OR frozen product means. We find that para-3 of the said Circular covers "applicability of GST on fresh and dried fruits and nuts." Para 3.2 and 3.3 of the said Circular reads as under: "3.2 At present, fresh nuts (almond, walnut, hazelnut, pistachio etc.) falling under heading 0801 and 0802 are exempt from GST, while dried nuts under these headings attract GST at the rate of 5%/12%. The general Explanatory Notes to chapter 08 mentions that this chapter covers fruit, nuts intended for human consumption. They may be fresh ....
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....ces as to how long does it take during the period the goods are harvested by the farmer till the same are supplied by the applicant. It is universal fact that shelf life of agricultural produce is enhanced by drying and other processing and in the absence of evidence about the time duration as discussed above, it can not be accepted that the produce remains fresh and in the same condition in which they are brought by farmers to the APMC. The applicant has submitted that in established agricultural and commercial practice, there is no marketable product such as 'Dried Isabgol seeds' or 'Frozen Isabgol seeds' in wholesale or retail trade, that Psyllium seeds (Isabgol) are traded as it is, after being harvested, in the same form (fresh form) without any further categorization. Hence, seeds supplied in natural, unprocessed form must be treated as fresh. We do not agree that for a product to be "dried" it should be labeled as "dried". 14. Since the product namely Psyllium seeds is an agricultural produce and the applicant is firmly of the view that their product is 'Fresh', it becomes pertinent to ascertain the meaning of 'fresh agricultural produce' in common parlance. In common par....
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.... 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 notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry....
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.... (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 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 18. 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 is Entry No.87 covering heading 1211 and 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". As discussed earlier, the product 'Psyllium seeds' is part of plant (seed) and is used in pharmacy for the production of 'Isabgol', Moreover, the said seeds can not be termed as 'fresh' ....
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....Notification No. 09/2025-CT dt 17.09.2025. Q.2. Alternatively, whether Psyllium Seeds (Isabgol) as discussed above qualifies as "goods of seed quality" and are exempt from GST under Entry 77 (HSN 12) of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025? A.2. No, in view of answer to Question 1.. ============= Document 1 anchesa ith quoi mại inTá» Tánin der (mg) TH HHHHH PASST/ Q-TIP -LUND PORUCH NICHTOYNA MATURAL Écrita (rayban sem) tố) att, men vi foneet afloor ma urenfax: vient . ----------------- nhà nt / naan ở thái tình 0; mình đầuum yja -4 Ä‘Æ¡nat man ở, Mình min má»›i eml: ermmm mmm warum için tauer etmind and di som min saintes man a cerca ₼ đất di qon Downg ) nh k) 2 --- - Si mai Thị mai-mai đóem Pia - -- man --- -- ------ - --------- है तब उसकी बड़ाई की जाती हैं। इसबगोल की फसल पकने के बाद किसानà....
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