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2021 (12) TMI 267 - AAR - GSTClassification of goods - rate of GST - Himsa Plus Oil, which is a ayurvedic hair oil used for various hair disease and headache - beauty product or medicinal products - HELD THAT:- On reconciling the Chapter Heading with Chapter Note, it indicates that only those products whose curative or preventive value is substantial and the product is manufactured primarily with a view to control or cure a disease by adding suitable pharmaceutical ingredients shall be covered under Chapter 30. All other preparations and cosmetics even if they have therapeutic or prophylactic properties would not fall within the meaning of medicaments under the GST regime - the label of the product Himsa Plus Oil does not contain dosage (or a mention of 'as advised by the physician') which is essentially mentioned on the label of medicaments. The said fact indicates that the said product is not a medicament. The product Himsa Plus Oil is poured on hair for beautification or promoting attractiveness as the same is in the nature of cosmetics. Moreover as per Chapter Note 1(e) of Chapter 30 of the Customs Tariff Act, 1975, Chapter 30 does not cover preparations of heading 3303 to 3307, even if they have therapeutic or prophylactic properties. As such, the product Himsa Plus Oil is predominantly a hair oil (i.e. preparations for use on the hair) meriting classification under Chapter sub-heading 330590 and attracts GST @ 18%.
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