Classification of goods— In the instant case, the company engaged in manufacturing and processing of dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold as bouquets made with dried parts of plants and packed in plastic foil packaging.

The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions—

(i) Whether the bouquets made with dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging would be considered as “Exempt supply” under GST as covered under HSN code 06049000.

(ii) Whether NIL (0%) GST is applicable on Bouquets when bouquets are made from dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging.

(iii) Whether classification of bouquets made from dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes falls under HSN code 06049000 and is exempt from GST and if not then what is the classification of bouquets which are made with dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging and what is the rate of GST.

(iv) Whether Sl. No. 34 of Notification No. 02/2017-CT (Rates) dated 28/06/2017 covers “Bouquets” made from dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and is therefore exempt from GST (0% GST).

The applicant submits that it supplies “Bouquets” made with dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging. According to the applicant, supply of the aforesaid goods is exempted from payment tax vide serial number 34 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017.

Held that— Bouquet made with dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging will be classifiable under Tariff Item Nos. 06039000 or 06049900, depending on its constituents and supply of the aforesaid goods is exempted from payment of tax vide serial number 34 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, as amended.