Classification of goods— The Applicant has sought for an advance ruling in respect of the following questions.-

(a) What is the HSN Code of 'Raula Gundi' (Final product of the Applicant)?

(b) What is the applicable rate of tax and Cess of the product?

The Applicant contended that he prepares/ intended to prepare a chewable Gundi which is made by mixing different ingredients like Tobacco dust, Bhaja dhania, Madhuri, Mala zira, Mustard oil, Epoil, Lime. The said Gundi is locally known as “Raula Gundi”. The applicant has also informed that for manufacture of 1 KG “Raula Gundi”, Tobacco 500gm, Dhania 300gm, Pan madhuri 50gm, Mala zira 50gm, Epoil 1ml, Lime 50gm, Mustard oil 75ml, Cinnamon 5gm & Clove 2.5gm are used. The Applicant is of the view that the HSN Code of the product (Raula Gundi) is 24039920 and the applicable tax rate is 14% CGST, 14% SGST and GST Cess is 72%.

Held that— The final product of the Applicant under the brand name 'Raula Gundi' is nothing but “Chewing Tobacco (without lime tube)” as discussed in the foregoing para 4.5 and the HSN Code is '2403 9910'.

The applicable rate of GST on the product is 28% (14% CGST + 14% SGST). The said product also appears at Sl.No.26 of Notification No.01/2017-Compensation Cess (Rate) dated 28.06.2017 issued under the CGST Act, 2017 under which Compensation Cess of 160% is leviable on it.