TaxTMI 
TaxTMI 
2026 (9) TMI 1646
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.... Applicant 3.1 The applicant is engaged in the manufacture of "Turmeric Extract/ Curcuma Elixir." As submitted, the manufacturing process involves sourcing turmeric rhizomes (Curcuma longa), followed by cleaning, drying, and extraction through steam distillation to retain essential curcuminoid content. The product is extracted using a natural steam distillation method to ensure high potency and purity while preserving the natural properties of turmeric. The product is stated to contain turmeric extract with high moisture content and without the addition of synthetic additives or preservatives. 3.2 The applicant submits that the product is intended to be marketed as a nutraceutical wellness supplement and consumed as a dietary supplement for anti-inflammatory, antioxidant, and immune-boosting benefits, and to support joint health, liver function, and overall well-being. It is contended that the product is medicinal in nature and capable of providing therapeutic benefits. 3.3 The applicant submits that the product is manufactured using natural ingredients without synthetic chemicals and should therefore be treated as a medicament rather than a wellness supplement. It is furt....
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....safety regulations. It was also submitted that the Applicant did not hold any licence for manufacture of essential oils, perfumes, fragrances, flavouring agents, or cosmetic products. A copy of the FSSAI Central Manufacturing Licence was stated to have been enclosed. 3.7 The Applicant further submitted that the product had been tested by NABL-accredited laboratories. It was stated that the laboratory reports confirmed compliance with microbiological safety standards, absence of heavy metals, and non-detection of synthetic preservatives, added colours, steroids, or prohibited substances. The Applicant submitted that active turmeric constituents were present and that the moisture content was approximately 99.91%, indicating a predominantly water-based composition. It was contended that the laboratory reports established that the product met food safety and quality requirements for human consumption. Copies of the laboratory reports were stated to have been enclosed. 3.8 Regarding the nature and intended use of the product, the Applicant submitted that the product was manufactured, packed, and marketed as a nutraceutical / health supplement. It was supplied in retail packs with ....
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....reiterated its contention that turmeric has recognized medicinal properties under traditional systems of medicine and therefore the product should be treated as a nutraceutical supplement and should be classifiable under heading 2106. 5.4 Subsequent to the personal hearing, the applicant vide letter dated 20.02.2026 furnished a written clarification regarding the manufacturing process, FSSAI licensing and laboratory test results, as recorded at paras 3.4 to 3.6 above. 6. Discussion and Conclusion: 6.1 We have carefully examined the application, the submissions made by the applicant, the documents placed on record and the relevant statutory provisions. The questions raised for determination are: (i) What is the applicable GST rate on the product "Turmeric Extract / Curcuma Elixir"? (ii) Whether the MRP of Rs. 4,990/- (being below Rs.5,000/-) has any bearing on the applicable GST rate? The questions raised relate to classification of goods, applicable rate of GST, and the relevance of MRP for determination of the rate of tax. These questions fall within the ambit of Section 97(2)(a) of the CGST/KGST Acts. Accordingly, this Authority has jurisdiction to p....
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....Explanatory Notes to Chapter 30 clarify that medicaments are products consisting of substances used for therapeutic or prophylactic purposes, put up in measured doses or in forms or packings for retail sale. The Notes expressly exclude preparations intended for maintaining general health or well-being, including food supplements and nutraceuticals. The essential test is whether the product is meant for diagnosis, treatment or prevention of a specific disease. 6.6 Medicaments are ordinarily supported by therapeutic claims, dosage discipline and regulatory recognition as drugs. The applicant has not produced any licence issued under the Drugs and Cosmetics Act, 1940, nor any evidence to indicate that the product is prescribed or recognized in medical practice as a medicament. This is a relevant factor while applying the common parlance and functional tests. 6.7 It is a well-settled position of law that the mere presence of ingredients possessing medicinal properties does not, by itself, render a product classifiable as a medicament. The classification of a product is to be determined based on its primary function, essential character, and the manner in which it is understood in....
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.... 13 - Foodstuffs intended for particular nutritional uses, sub-category 13.6 - Food supplements. 6.9 In the present case, the applicant themselves describe the product as a nutraceutical wellness supplement. The claims made relate to immune support, antioxidant properties and overall wellness. The product is presented as a consumable preparation containing curcumin and other ingredients known for their antioxidant and immunity-supporting properties. The label claims and promotional materials indicate that the product is intended to promote immune support, provide antioxidant benefits and enhance overall wellness. These claims are generic in nature and are commonly associated with dietary supplements. However, the chemical examination report indicates that the product consists of approximately 99.9% moisture/water with only trace quantities of curcumin and therefore the claimed curcumin based health benefits are not substantiated by the actual composition of the product. There is no claim to suggest that the product is meant to diagnose, treat, cure or prevent any specific disease or medical condition. The absence of such specific therapeutic claims is a significant factor in dis....
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....cordingly, classification of the impugned product under Chapter 33 is not sustainable. 6.12 In light of the foregoing discussion, we hold that the impugned product, which is intended to be used as a wellness supplement, is appropriately classifiable as a nutraceutical / dietary supplement under Heading 2106 as a food preparation not elsewhere specified or included. The product is neither classifiable as a medicament under Chapter 30 nor as an essential oil or aromatic preparation under Chapter 33. Accordingly, the product is classifiable under HSN 2106 and was taxable at the rate of 18% (9% CGST +9% SGST) under SI. No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017, issued under the Central Goods and Services Tax Act, 2017. 6.13 It is also relevant to note that, pursuant to the recommendations of the GST Council under the GST 2.0, the rate structure under Notification No. 1/2017-Central Tax (Rate) was amended vide Notification No. 9/2025-Central Tax (Rate) dated 17.09.2025, effective from the notified date. As per the Notification, goods falling under HSN 2106- "Fo....