The Cigarettes of tobacco are covered at Sr. No.14 of Schedule-IV to Notification 1/2017-CT(R), liable to 28% GST along with Compensation Cess of Rs. 4006 per thousand.
Classification of goods— In the instant case, the applicant submits that it supplies ‘Aorom Herbal Smokes (regular)’. The applicant submits that herbal smoking is an ancient practice to cure many diseases from root mentioned in Ayurveda; this practice is named as dhumapana; it is still a common practice in ayurvedic treatments / therapy such as Panch-Karma and is done by ayurvedic M. Ds as a medicine to many diseases.
Question on which Advance Ruling sought is as follows—
1. Determination of the liability to pay Tax on Sales of Aorom Herbal Smokes – (regular flavour) as per Tax Invoice No.: AH/GST/80 dt. 07/06/2021 made to : M/s. Sonde Exim Pvt. Ltd., Lohegon – Meharashtra, regarding. – IGST.
2. Determination of the liability to pay Tax on Sales of Aorom Herbal Smokes (regular flavour) as per Tax Invoice enclosed herewith of Gujarat Sales regarding CGST and SGST.
The subject goods find their specific description as ‘cigarettes of tobacco substitutes’ at HSN 20029010. The Explanatory notes to HSN have guidance value to classify goods. The Explanatory Notes [ page IV-24-I] to Chapter 24 specifies that this Chapter covers not only unmanufactured and manufactured tobacco but also manufactured tobacco substitutes which do not contain tobacco.
Held that— The Cigarettes of tobacco substitutes are covered at Sr. No.14 of Schedule-IV to Notification 1/2017-CT (R) dated 28-6-2017, liable to CGST @14%. Further, the GST Compensation Cess on Cigarette of Tobacco Substitutes is leviable, vide Sr. No. 16 of Not. No. 1/2017- Compensation Cess (R) dated 28-6-17.
The Cigarettes of tobacco are covered at Sr. No.14 of Schedule-IV to Notification 1/2017-CT(R), liable to 28% GST along with Compensation Cess of Rs. 4006 per thousand.
Classification of goods— In the instant case, the applicant submits that it supplies ‘Aorom Herbal Smokes (regular)’. The applicant submits that herbal smoking is an ancient practice to cure many diseases from root mentioned in Ayurveda; this practice is named as dhumapana; it is still a common practice in ayurvedic treatments / therapy such as Panch-Karma and is done by ayurvedic M. Ds as a medicine to many diseases.
Question on which Advance Ruling sought is as follows—
1. Determination of the liability to pay Tax on Sales of Aorom Herbal Smokes – (regular flavour) as per Tax Invoice No.: AH/GST/80 dt. 07/06/2021 made to : M/s. Sonde Exim Pvt. Ltd., Lohegon – Meharashtra, regarding. – IGST.
2. Determination of the liability to pay Tax on Sales of Aorom Herbal Smokes (regular flavour) as per Tax Invoice enclosed herewith of Gujarat Sales regarding CGST and SGST.
The subject goods find their specific description as ‘cigarettes of tobacco substitutes’ at HSN 20029010. The Explanatory notes to HSN have guidance value to classify goods. The Explanatory Notes [ page IV-24-I] to Chapter 24 specifies that this Chapter covers not only unmanufactured and manufactured tobacco but also manufactured tobacco substitutes which do not contain tobacco.
Held that— The Cigarettes of tobacco substitutes are covered at Sr. No.14 of Schedule-IV to Notification 1/2017-CT (R) dated 28-6-2017, liable to CGST @14%. Further, the GST Compensation Cess on Cigarette of Tobacco Substitutes is leviable, vide Sr. No. 16 of Not. No. 1/2017- Compensation Cess (R) dated 28-6-17.