Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 22-2-2019 – In general parlance, there are many products which are used as cosmetics or soaps which may have medicinal relevance or considered as Ayurvedic in nature. Ayurvedic is one discipline of medicine just like allopathy or homeopathy. The issue of classification came up before the Authority for Advance Ruling (AAR) of West Bengal in the matter of Akansha Hair & Skin Care Herbal Unit Pvt. Ltd. 2018 (4) TMI 811 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL ; . However, this ruling has since been modified by Appellate Authority for Advance Ruling, West Bengal. In the instant case, there was a manufacture of skin care preparations and issue was of classification of 33 such products. It was claimed that its skin care preparations are Ayurvedic Medicaments. They are meant for therapeutic or prophylactic uses, put up in packaging for retail sale and entirely correspond to the description of goods under HSN 3004 [seri
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cts mentioned in the list submitted by them are not offered primarily as medicaments and, therefore, not to be included under Heading 3004. This ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. It was also observed that medicaments are not defined under GST law or Customs Tariff applicable for goods classification in GST law. Further, for classification of skin care products as medicament, it is not sufficient that such a product manufactured as per authoritative text book, merely helps in controlling skin disease. Its curative or preventive value must be substantial, and product must be manufactured primarily to control or cure a skin-related disease. Further, it must he established that consumers use it primarily for treatment, mitigation, cure or prevention of specific skin disease or skin disorder. Since most of skin care preparations have both uses i.e. medicinal as well cosmetic, essential differenc
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18 (4) TMI 811 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL] gave the ruling that: Preparations for the care of the skin namely, Rupam (Pimple Pack) and Pailab (Anti-Crack Cream), in the list submitted by the Applicant are classifiable as Medicament under Heading 3004 of the Customs Tariff Act, 1975. Preparations listed as Swarnajyoti, Sunayana and Tarumitra-60 have not yet come into existence, and, therefore, no rulings are pronounced on their classification. The remaining products mentioned in the list submitted by them are not offered primarily as medicaments and, therefore, not to be included under Heading 3004. It was held that to determine whether or not a product or a formulation is to be labelled as a 'medicament', it is necessary to consider its efficacy in treating or remedying an 'injury', an 'ailment' or an 'illness'. The four products in question were Komal Parash and Romancho (Lavender, Vanila and Kewra). None of the above descriptions qual
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