The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that Rapigro attracts 18% GST.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that ‘Rapigro’ is classifiable as a Plant Growth Regulator and not a fertilizer.The applicant, M/s. Isagro was engaged in the manufacture of the product Rapigro and was classifying it under TI 3507 of CETA '85 as a...
The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that Rapigro attracts 18% GST.
The bench of Amit Kumar Mishra and Milind Kavatkar has observed that ‘Rapigro’ is classifiable as a Plant Growth Regulator and not a fertilizer.
The applicant, M/s. Isagro was engaged in the manufacture of the product Rapigro and was classifying it under TI 3507 of CETA '85 as a fertilizer. However, Central Excise authorities classified it under TI 38089340 as a 'plant growth regulator'.
The applicant sought an advance ruling on the classification of Rapigro under the Customs Tariff Act, of 1975, and under the Central Goods and Services Tax Act, of 2017.
The dispute primarily centres on whether the product is a fertilizer, as claimed by the applicant, or a plant growth regulator.
The applicant contended that they had applied and were granted registration for the product as a 'biostimulant, and being a bio-stimulant, it fell within the definition of fertilizer.
The AAR noted that there is only a fine distinction between fertilizer and plant growth regulator'. While fertilizer is generally used to promote the growth of plants or crops for the desired increased harvest, plant growth regulators work on specific areas, resulting in modified growth or even retardation of certain growth.
The AAR ruled that the product Rapigro merits classification under TI 38089340 as a Plant Growth Regulator.
Applicant’s Name: Jivagro Limited
Date: 30/06/2023