2018 (7) TMI 965 – AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN – 2018 (14) G. S. T. L. 600 (A. A. R. – GST) – Classification of goods – Bio Fertilizer – rate of GST – Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101)?
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Held that:- Bio fertilizer is a substance which contains living micro organisms which, when applied to the seed, plant surfaces or soil colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Bio-fertilizers add nutrients through the natural processes of nitrogen fixation, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth-promoting substances.
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Bio-Fertilizers, other than those put up in Unit Container and bearing a brand name will covered under Schedule I of rate of GST on Go
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Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101) 2. The applicant has submitted a copy of The Fertilizer (Control) Order 1985, Ministry of Agriculture and Rural development regarding definition of Biofertilizer as, Biofertiliser means the product containing carrier based (solid or liquid) living microorganisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilisation or nutrient mobilization, to increase the productivity of the soil and/or crop/ The applicant has also submitted specifications of Bio-Fertilizers. 3. Applicant s Questions(s) on which Advance Ruling is required In order to seek advance ruling that, whether (i) Whether goods (Bio Fertilizer or Organic Manure) are Exempt from GST or Not ? Personal Hearing (PH) 4. 1. In the matter personal hearing was given to the applicant, Shri B.S.Yadev, Managing Director, who appeared as representative of applicant fo
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red brand name and fall under Tariff Item 3101 and are chargeable at 2.5% CGST+ 2.5% SGST total GST of 5% . Issues to be decided: 5. The issue involved in this case is that, Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101) Findings and analysis: 6.1 Bio fertilizer is a substance which contains living micro organisms which, when applied to the seed, plant surfaces or soil colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Bio-fertilizers add nutrients through the natural processes of nitrogen fixation, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth-promoting substances. Major types and source of Biofertilizers are :- a. Rhizobium is a bacterium living in the root of leguminous plants in symb
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e 3101 in the Schedule I of rate of GST on Goods, comprising of List of Goods at NIL Rate states as below:- All goods and organic manure other than those put up in unit container and,-(a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE I] (B) Entry at HSN Code 3101 in the Schedule IV of rate of GST on Goods, comprising of List of Goods at 5% Rate states as below:- All goods i.e. animal or vegetable fertilizers or organic fertilizers put up in unit containers and bearing a brand name (C) The standard description of the HSN Code 3101 is as below:- Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products (D) Bio
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