TMI Blog2022 (9) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... ENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE TEALANGANA GOODS AND SERVICES TAX ACT, 2017.] ****** 1. M/s. Incnut Lifestyle Retail Private Limited, Office No.G-3, Ground Floor,, Modern Profound Tech Park, Kondapur, Serlingampally, Hyderabad, Rangareddy, Telangana 500084 (36AAECI8820M1Z6) has filed an application in FORM GST ARA-01 Act, 2017 read with Rule 104 of CGST/TGST Rules. under Section 97(1) of TGST 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hair Fall Oil b) Viruj Hair Fall Oil for Normal Oily Scalp c) Shvedan Hair Fall Oil- Non-Frizz Oil- For Dry Scalp d) Vapra Root Stimulating Hair Oil e) Niryath Root Stimulating Hair Oil f) Vanya Root Stimulating Hair Oil g) Praya Root Stimulating Hair Oil h) Jeevath Root Stimulating Hair Oil i) Ahuta Root Stimulating Hair Oil B. For treatment of dandruff and other hair disorders: a) Dhavath Hairfall Shampoo (men care) b) Vikleda Deep Conditioning Shampoo for Dry Hair (men care) c) Dhavath Hairfall Shampoo d) Vikleda Deep Conditioning Shampoo for Dry Hair e) Vartha Hydrating No Frizz Hair Conditioner f) Rachan Intense Hydration Leave-In Conditioner g) Paristar Super Shield Sub Block Leave-In Condition h) Sushant No-Frizz Moisture Solution Leave-In Conditioner C. For treatment of facial disorders: (a) Ekansh Hydro Tonic Moisturizing Face Cream (b) Kavan Hydralite Moisturising Face Gel (c) Siddh HydraPlenish Moisturizing Face Lotion (d) Anudha Glow Restore Moisturizing Face Lotion (e) Sthavi Hydroplenish Moisturizing Face Cream (f) Niraj HydroMatte Oil Free Face ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to be taxed as Ayurvedic medicaments i.e., under HSN 30049011 . The commodity medicaments skin care products are enumerated in Notification No. 01/2017 dt. 28.06.2017 under different schedules of the said notification as follows: Schedule No. S.No. in the Schedule Chapter/Heading /Sub-heading/ Tariff item Description of Goods Rate of CGST I 178 30 Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name 2.5 180 30 or any Chapter Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 1 appended to this Schedule 2.5 181A 30 Medicaments (including those used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under chapter 33 or chapter 30 of the customs tariff code as these products have the shades or qualities of both skin care/cosmetic as well as cure of certain ailments. The Hon ble Supreme Court of India in the case of Commissioner of Central Excise, Mumbai IV Vs Ciens Laboratories (2013) 14 SCC 133 formulated the following principles for determining the nature of a product as to whether it is a medicament or a cosmetic: Firstly, when a product contains pharmaceutical ingredients that have therapeutic or prophylactic or curative properties, the proportion of such ingredients is not invariably decisive. What is of importance is the curative attributes of such ingredients that render the product a medicament and not a cosmetic. Secondly, though a product is sold without a prescription of a medical practitioner, it does not lead to the immediate conclusion that all products that are sold over/across the counter are cosmetics. There are several products that are sold over-the-counter and are yet, medicaments. Thirdly, prior to adjudicating upon whether a product is a medicament or not, Courts have to see what the people who actually use the product understand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 34 (which deals with detergent products), observed that: In our view, as we have already stated, the combined factors that require to be taken note of for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put. Drawing from the above and based on the information submitted by the applicant, the undersigned authority for advance ruling propose to classify the products either as a cosmetic whose primary function is care and not cure which is used for enhancing-improving a person s appearance -beauty or on the other hand a medicament used to treat or cure a medical condition by adopting the following parameters: a) The product should have a drug license. b) The Composition of the product should have medical ingredients. c) The product label/character should indicate the function or the purpose for which it is used. It is seen that all the products mentioned above have a drug license and have Ayurvedic ingredients, but the purpose and function as seen from the literature submitted differ therefore a conclusion for each of the products are mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hair Oil Herbal Ingredients No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Doctor Formulated Silicone free Safe and Effective 7 Tavas Non Sticky Hairfall Oil For Oily Scalp Controls Hairfall No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Promotes New Hairgrowth Suitable for Oily scalp 8 Viruj Hairfall Oil For Normal Oily scalp Controls Hairfall No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Promotes New Hairgrowth Suitable for Normal oily scalp 9 Shvedan Hairfall Oil No-frizz oi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 Dhavath Hair Fall Shampoo Hair Fall Shampoo Herbal Ingredients No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Doctor Formulated Sulphate and Paraben Free Safe and Effective 6 Dhavath Hair Fall Shampoo (Men care) Hair Fall Shampoo Herbal Ingredients No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Doctor Formulated Sulphate and Paraben Free Safe and Effective 7 Vikleda Deep Conditioning Shampoo for Dry hair Shampoo for Dry hair Herbal Ingredients No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 6 Siddh HydraBlemish Moisturizing Face Lotion Provide longlasting skin moisturization No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 D. For treatment of mouth and oral disorders: S.NO PRODUCT NAME Purpose/ Label Description of product in the material Indication for cure/care Conclusion of AA 1 Shastra Oil Pulling Oral Care Oil Strenghtens Teeth and Gums The label indicates treatment /cure of a medical condition. Medicament falling under HSN 3003. Reduces Tooth Sensitivity Improves Oral Hygiene Removes Dental Plaque 2 Shuchit Oil Pulling Oral Care Oil Strenghtens Teeth and Gums The label indicates treatment /cure of a medical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Face Serum Lightening blemishes achieving perfect skin Complexion No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 6 Avi Pureglow Antioxident Face Serum Lightening tan and achieving perfect skin complexion No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 7 Arin Collagen Booster Face Serum Improving the visible signs of skin ageing, maintains complexion, hydration and skin elasticity No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 8 Irya Spot Correcting Face Serum Lightening Blemishes and achieving perfect skin complexion No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wth Serum with Dandruff Care Herbal Ingredients The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. Medicament falling under HSN 3003. Doctor Formulated Sulphate free Safe and Effective 16 Nibhida Advanced Hair growth Serum with Dandruff Care Hair growth Serum with Dandruff Care Herbal Ingredients The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. Medicament falling under HSN 3003. Doctor Formulated Sulphate free Safe and Effective 17 Pratitih Hairgrowth with dandruff care serum For Severe Dandruff Reduces Severe Dandruff The label indicates treatment /cure of a medical condition, i.e., Sedorrhoeic Dermatitis commonly known as Dandruff. Medicament falling under HSN 3003. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indication for cure/care Conclusion of AA 1 Rejat Brightening Clay Mask For Tonned Skin Reduces Sun Tan No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Makes skin bright and glowy Removes dullness 2 Samdha Firming Facial Clean Mask For Ageing Skin Hydrates skin No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Reduces signs of ageing Improves glow 3 Dhaval Skin Radiance Facial Clay Mask For Pigmnented Skin Evens out skintone No indication for curing or treating any ailment or disease Not a medicament hence falls under Chapter 3304 Lightens Dark Spots and Patches Improves glow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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