Alligo Agrovet Private Limited vs. Na
(AAR (Authority For Advance Ruling), Maharashtra)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as and “the CGST Act and MGST Act” respectively] by M/s. ALLIGO AGROVET PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following question.
1. Classification of goods and GST rate applicability in the case of goods manufactured by us (list enclosed)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to “GST Act” would means CGST Act / MGST Act.
3. FACTS AND CONTENTION – AS PER THE APPLICANT
The goods manufactured and supplied by us cover under Organic Fertilizers and the same have been certified by the INDOCERT, BIOCERT (as institute / authorities) appointed under National programme for organic Production, Department of Commerce, New Delhi.
The Products mentioned in enclosed list contain Animal or Seaweed Plant excreta, Nitrogenous, Potasic Fertilizers and Micronutrients which are required for the growth and development of the plant and also used to increases overall yield and quality of plant produce.
Therefore, according to us products correctly classify under HSN 3 101 or 3105.
Additional submissions:
PRODUCTS SUBMITTED FOR CLARRIFICATION REGARDING CLASSIFICATION IS. ORGANIC CERTIFIED PRODUCTS AS PER STANDARDS OF (NPOP) NATIONAL PROGRAMME FOR ORGANIC PRODUCTION.
1. Our product for which seeking clarification is certified Organic Products under the NATIONAL PROGRAMME FOR ORGANIC PRODUCTION (NPOP) GOVERNED UNDER (APEDA-AGRICULTURE AND PROCESSED FOOD PRODUCTS) THE MINISTRY OF COMMERECE & INDUSTRY GOVT. OF INDIA.
The Government of India has implemented the National Programme for Organic Production (NPOP). The national programme involves the accreditation programme for Certification Bodies. standards for organic production. promotion of organic farming etc.
The NPOP standards for production and accreditation system have been recognized by IFOAM (International Federation of Organic Agro Movements), European Commission and Switzerland for unprocessed plant products as equivalent to their country standards. Similarly, USDA has recognized NPOP conformity assessment procedures of accreditation as equivalent to that of US. With these recognitions, Indian organic products duly certified by the accredited certification bodies of India are accepted by the importing countries.
2. Our products certified after verification and inspection done by the INDOCERT and BIOCERT authorities appointed under NPOP, and audited, renewed annually. Since last 5 (Five) years we were following the Organic principals of farm Inputs as per NPOP. Copy of certificate issued by the INDOCERT and BIOCERT submitted for your perusal.
[Copy of Certificate enclosed Aniterure –
A.]
3. The list of products declared in Annexure-I as per standard of NPOP which can be used for formulation and manufacturing of agricultural Inputs are enclosed herewith for your ready reference.
(Copy of Annexure -I enclosed Annexure – A1]
[B] RESIDUE ANALYSIS REPORT
We intend to submit that, when our products were tested by the Govt. laboratory of National Horticultural Research and Development Foundation Nashik we did not find any ingredients of Fungicides, Pesticides or insecticides and Plant growth Regulators. Copy of products sample Test Report enclosed for your ready reference.
We can also submit products samples, for further testing or verification to the Hon’ble authorities.
(Copy of Analysis Report enclosed Annexure.- B]
[C] OUR PRODUCT DOES NOT FALL UNDER THE CATEGORY OF PESTICIDE,
Our product is not falling under the category of Pesticides. They are having fertilizing elements that promote healthy plant growth and plant immunity,
The products manufactured by us have Organic Extracts of Animal & Plant Origin. For e.g. products have Marine-Sea Weed Extract, Plant Extracts etc.
[D] CLASIFICATION OF PRODUCTS
1. Fertilisers as Per FCO 1985.
Definition of Fertiliser as per FCO 1985 – (h) “fertiliser” means any substance used or intended to be used as a fertiliser of the soil and/or crop and specified in Part A of Schedule I and includes a mixture of fertilizer and special mixture of fertilisers provisional fertiliser, customised fertilizer: Bio-fertilizers specified in Schedule III and Organic fertilizers specified in Schedule IV
Definition of fertilizer under FCO has a functional definition and a list specific definition; Under FCO, Fertilizer should satisfy two conditions which are joined by the conjunction and’ in above definitions.
(i) It should be a substance used or intended to be used as a fertilizer of the soil and/or crop (basic functional definition); and
(ii) It should be specified in either Part A of Schedule-I or Schedule-III or Schedule-IV. (Out of the fertilizers, which qualify the functional definition, only the fertilizers which are listed in schedule shall be subjected to controls under FCO).
Therefore, the products manufactured by us are organic fertilisers by functions and also having fertilizing elements. But as clarified above they won’t be governed under FCO as well as Insecticides Act, 1968.
The organic products not covered under FCO are governed as per NPOP Norms and certified accordingly.
[Copy of definition of fertilisers as per FCO enclosed Annexure-C]
2. FCO is not relevant to classify products as fertilisers, CBIC Circular No. 1022/10/2016-CX dated 06th April 2016.
a) As stated in above Para FCO are not relevant for classification of fertilisers’ products, the same also clarified in CBIC Circular 1022/10/2016-CX dated 06th April 2016. Para 4 of the circular reproduce below for your ready reference;
4. Fertilizers are classified under chapter 31 of the Central Excise Tariff and for this purpose they may interalia be minerals or chemical fertilizers nitrogenous (CETH 3102), phosphatic (CETH 3103), potassic (CETH 3104) or fertilizers consisting of two or three of the fertilizing elements namely nitrogen, phosphorous and potassium; other fertilizers (CETH 3105). For the purpose of classification of any product as “other fertilizers”, chapter note 6 of Chapter 31 is relevant which provides that the term “other fertilizers” applies only to products of a kind used as fertilizers and contain, as an essential constituent, at least one of the elements nitrogen, phosphorus or potassium. It is quite clear that for any product to merit classification under CETH3105 as other fertilizers, the product must have nitrogen or phosphorus or potassium or their combination as an essential constituent providing the essential character to the product. The chemical elements – nitrogen, phosphorus and potassium are also referred as macronutrients or primary fertilizer elements and are required in higher quantity by the plants.
4.2 Any product where the essential elements are not nitrogen or phosphorus or potassium or their mixture would not merit classification under CETH 3105. Further, the specific exclusion of separate chemically defined compounds as laid down in chapter note 1 (b) and in the HSN Explanatory Notes to the heading 3105.90, reinforce the above conclusion. It may also be noted that notifications issued under Fertilizer Control Order are not relevant for deciding classification under the Central Excise Tariff.
3. Our Products do not cover under Plant Growth Regulator.
A) Further in the said Circular; category and type of PGR1 s has also been clarified/explained in detailed. Plant Growth Regulators are defined as organic compounds other than nutrients that affect the physiological processes of growth and development in plants when applied in low concentration. These are in the nature of plant hormones and classical of them are auxins, cytokinins, gibberellins (all three promoters) and abscisic acid, ethylene (both inhibitors). A list of some of the PGRs industrially produced in India is enclosed with the Circular by reply of IARI reproduce below for ready reference –
| S.No. | Points | Comments |
| i) | ………. | ………………….. |
| ii) | ………. | ………………….. |
| iii) | What are Plant Growth regulators (PGRs)’ What are their functions in the plant? | PGRs: Plant growth regulators defined as organic compounds other than nutrients that affect the physiological processes of growth and development in plants when applied in low concentrations. Plant growth regulators are active at low concentrations (1-10 ng / nl) in promoting, inhibiting or modifying growth and development. They are either natural or synthetic compounds that are applied directly to a target plant to alter its life processes or its structure to improve quality, increase yields, or facilitate harvesting. In modern agriculture, people have established the benefits of extending the use of plant hormones to regulate growth of other plants. When natural or synthetic substances used in this manner, they are called Plant Growth Regulators. Role:
Examples: (a) Classical plant hormones (auxins, cytokinins. gibberellins, abscisic acid. ethylene) and growth regulatory substances with similar biological effects. (b) More recently discovered natural growth substances that have phytohormonal-like regulatory roles (polyamines, oligosaccharins, salicylates. jasmonates, sterols. brass inosteroids, dehydrodiconiferyl alcohol glucosides, turgorins, systemin, unrelated natural stimulatorsand inhibitors), as well as myoinositol. Many of these growth active substances have not yet been examined in relation to growth and organized development in vitro. |
In the instant case none of the above stated components / elements are found in our products. They only promote normal growth. Therefore; our products classify or cover correctly under HSN 3101 – Organic fertilisers.
(Copy of Circular enclosed Annexure-D]
B) We reiterated to further submit that, the product cannot go to HSN 3808 it should be classified under HSN 3101, on the basis of following grounds;
| Fertilizers | Plant Growth Regulators |
| Tariff Heading 31.01 Animal or vegetable/ fertilizers, whether or not mixed together or chemically treated; fertilizers produced by the mixing or chemical treatment of animal or vegetable products. | Tariff Heading 3808 : Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphus-treated bands, wicks and candles, and fly-papers). |
| HSN Explanatory Notes This heading covers : (a) Animal or vegetable fertilizers, whether or not mixed together or chemically treated; (b) Animal or vegetable products converted into fertilizers by mixing together or chemical treatment. Note: The products covered under Chapter chapter 31 are only intended for enhanced growth and not intended for adverse growth as in case of PGRs. | HSN Explanatory Notes The heading further covers anti-sprouting products and plant growth regulators intended to inhibit or modify physiological processes in plants. Plant Growth Regulators are applied to alter the life processes of a plant so as to accelerate, or retard growth, enhance yield, improve quality or facilitate harvesting Note: The products covered under 38 are intended to inhibit or modify physiological changes in plants, i.e., altering or modifying the plant’s structure and life processes. PGRs particularly bring hormonal changes in the plants. PGRs effect both accelerated and retarded growth. And all of them are covered in the schedule of Insecticide Act, 1968 as amended time to time. |
| Chapter Note in CTA, 1975 This Chapter covers most products in general uses as natural or artificial fertilizers: Note : Chapter Note to Chapter 31 States that it covers products used as natural or artificial fertilizers. | Chapter Note in CTA, 1975 This Chapter covers a large number of chemical and related products. It does not cover separate chemically defined elements or compounds (usually classified in Chapter 28 or 29), with the exception of the following: Note : Chapter note to Chapter 38 States that it covers only chemical products and Chemical related products. |
From the above definitions, HSN Explanatory Notes, it can be said that the fertilizers help in overall growth of the plants. It is inferred that fertilizers provide nutrients to soil making it more fertile and thus provide overall growth of plants, and;
Form the above definitions, HSN Explanatory Notes; it can be said that the PGRs help in selective growth of the plants. It is inferred that PGRs do not provide nutrients to the plants rather promotes or inhibits growth of a selected part of plants.
We rely on the judgment of Hon’ble CESTAT-Delhi in the case of Northern Minerals Ltd. [2001 (131) E.L.T. 355 (Tri.-Del) NEW DELHI further affirmed in [2003 (156) E.L.T. A161 (S.C.)). the Hon’ble CESTAT held that; “Plant Growth Regulators are natural or synthetic organic compounds other than nutrients and that they can modify, inhibit or alter physiological processes in plants. Therefore, for the purpose of classification of products as a plant growth regulator under the heading 3808, it is to be seen that the product has a functional ability to inhibit or alter or modify plant processes.”.
[Copy of Case Law enclosed Annexure… E1]
Therefore in the line of the aforementioned judgment it can be said that the products should possess a functional ability of inhibiting or altering the plant processes to be classified under Heading 3808. Since our products are Organic fertilizers to promote plant growth and not change modify plant growth, therefore; will be covered under a more specific Heading 3 1 01 and will not covered under 3808 as plant growth regulators.
4. Our Products also contains and having the Fertilising Elements of N-P-K (nitrogen, phosphorous and potassium).
A) We hereby declare that, list of our product submitted for seeking clarification on classification are also contain fertilising elements N-P-K (nitrogen, phosphorous and potassium)
For our internal knowledge and product development we had verified (testing) N, P, K component in our products from soil. testing and bio-chemistry, laboratory ‘National Horticultural Research and Development Foundation’. Taluka Niphad, Dist. Nashik and from Private Labs also.
As per Lab Test Report it was confirmed that, Nitrogen and Potash available / found in the product. Copy of Lab Test Report for products Autus, Q-Prax, SJ-Eraser, Shyam Samruddhi, SJ Ninja, Stress Out, Telnar, and VK’s Nemo etc. enclosed herewith for your ready reference:
(Copy of Test Report enclosed Annexure – F]
B) We rely on the judgement of Hon’ble CESTAT-Chandigarh in the case of Safex Chemical India Ltd. Vs. Comm. Of Central Excise Rohtak reported in 2017 (7) G.S.T.L. 234 (Tri. Chan.), the Hon’ble CESTAT pronounced that, “Product composed of sulphates, borates, silicates of potassium, ammonium, and iron and containing auxins & cytokinins also in addition to other ingredients, used for replenishment of nutrients of soil, classifiable under sub-heading 3101 00 of Central Excise Tariff as ‘vegetable fertilizer’ as held under impugned order after detailed analysis, and not under sub-heading 3808 90 ibid as plant growth regulator”.
[Copy of Case Law enclosed Annexure-G]
C) We also rely on the judgement of Hon’ble CESTAT- HYDERABAD in the case of ARIES AGROVET INDUSTRIES LTD. reported in 2017 (7) G.S.T.L. 317 (Tri. – Hyd.), the Hon’ble CESTAT pronounced that Fertilizers – Micronutrient fertilizers – Chelamin, Agromin, Chelafer and Chelacop. – Products are mixtures, and not separate chemically defined compounils, and contain more than one of nutrients listed in C.B.E. & C. Circular No. 1022/10/2016-CX, dated 6-4-2016, as well as recognizable percentage of nitrogen –
Therefore, items come under ambit of ‘micronutrient fertilizers’, classifiable under Heading 31.05 of Central Excise Tariff as other fertilizers’, as held under impugned order, and not under Heading 38.08 ibid as plant growth regulators’ as contended by Revenue.
[Copy of Case Law enclosed Annexure – H]
We reiterated to submit that: as per general rules of interpretation of CTA. 1975 Rule 3(a) the heading which provides more specific description shall be preferred to heading providing a more general description. Therefore: in our case heading 3101 provides more specific description than the heading provided in HSN 3808.
E) THE DETAILS EXPLANATION OF OUR GOODS / PRODUCT CONTENTS ARE AS UNDER;
| S.No. | Product Name | Use | Content | Type |
| 1. | AUTUS | AUTUS is an organic manure liquid. It enhances nitrogen uptake and photosynthesis process. AUTUS increases lateral and white root population improving rate of absorption of fertilizers helping to withstand stress condition. AUTUS increases yield, keeping fruit, vegetables and perennial crops, quality while reducing flower & fruit drop. | Marine Plant Extract- 02% Potash -0.2% Copper: -0.02% Stabilizer -10% Aqua Q.S. | Organic manure liquid |
| 2. | SHYAM SAMRUDDHI | Shyam Samruddhi is a novel combination of organic, N,P,K,S, and amino fertilizer source providing Zn, Fe, Me, Boron microelements in bioavailable form. Shyam Samruddhi acts as excellent soil conditioner improving white root development, enhancing crop quality, vitality & texture. Shyam Samruddhi applicable to vegetable, horticulture trees, cereals and field crops with compatibility to urea like other fertilizers. | Organic Nitrogen Source – 10.00% Organic Phosphorus Source 01.00% Organic Potash Source – 01.50% Organic Sulphar – 12.00% Humic Acid – 04.79% Glutamic Acid – 04.65% Methionine – 0.40% Phenylalanine – 0.45% Lysine – 0.32% Arginine – 0.25% Glycine – 0.30% Additives – 0.34% Organic Matter – 60.00% | Organic Slow Release Soil Manur |
| 3. | SJ-NINJA | NINJA SJ-Ninja is a micronutrient liquid supplying zinc and copper as a nutrient source to plants. SJ-Ninja is with pure natural properties safe to the crops & human. SJ-Ninja can be included in IPM programme. SJ-Ninja also increases plant immunity. | Algal extract 10% Organic copper 0.03% Zinc. 0.9% Stabilizer 10% Aqua Q.S | Micronutrient liquid |
| 4. | SJ-ERASER | SJ-Eraser is a unique micronutrient liquid fomulation: SJ-Eraser gives result in 48 to 72 hours. Plant vigour and strength is developed due to use of SJ-Eraser. SJ-Eraser enhances plant immunity. SJ-Eraser can be included in IPM programme. | Algal extract 10% Nitrogen 0.4% Potash 0.2% Stabilizer 10% Aqua Q.S. | Micronutrient liquid formulation |
| 5. | Q-PRAX | Q-Prax is a novel liquid microfertilizer. Q-Prax promotes carbohydrate and protein formation. Q-Prax activates lignin synthesis and photosynthesis of plants. Q-Prax makes plant more tolerant to epidemics. | Algal extract – 10% Organic copper – 0.6% Stabilizer – 10% Solvent – Q.S. | Microfertilizer liquid |
| 6. | TELNAR | Telnar is a unique micronutrient liquid. Telnar helps plant to achieve better yield. Telnar removes micronutrient deficiency. Telnar helps plant to become more resistant against bacterial pathogenic attack Telnar can be included in IPM programme. | Algal extract 10% Copper- 0.6% Emulsifiers 0.5% Stabilizers – 0.5% Solvent Q.S. | Microfertilizer liquid |
| 7. | VK’S NEMO | VK’s NEMO is a specialised microfertilizer liquid. VK’s NEMO converts more amino acids in proteins. VK’s NEMO on soil application enhances starch production and root development. VK’s NEMO also increases plant immunity against nematode infection. | Algal extract 04% Camelia dust 03% Organic copper 03% Organic zinc 0.6% Stabilizer 10% Aqua Q.S. | Microfertilizer liquid |
| 8. | STRESS OUT | Stress Out is an excellent supplement to regular, fertilizer program. Stress Out increases overall yield and quality of plant by increasing nitrite reductase activity and decreases residual nitrite and nitrate, Stress Out helps the plant to sustain against adverse stresses by activating enzymes of antioxidant defence system. Stress Out enhances color, sugar content and firmness of fruits and flowers, Stress Out is a residue-free formulation. | Fungal extract 10% Zinc 0.3% Anti foam agent – 05% Stabiliser – 10% Solvent -Q.S. | Organic manure liquid |
CLASSIFICATION OF PRODUCTS
| Sr.No. | Product Name | Use | Content | Type | HSN | GST Rate | Condition |
| 1. | AUTUS | AUTUS is an organic manure liquid. It enhances nitrogen uptake and photosynthesis process. AUTUS increases lateral and white root population Improving rate of absorption of fertilizers helping to withstand stress condition. AUTUS increases yield, keeping fruit, vegetables and perennial crops, quality while reducing flower & fruit drop. | Marine Plant Extract-2%. Potash -0.2% Copper- .02 % Stabilizer-10% Aqua Q.S. | Organic manure liquid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container or put-up unit container |
| 2. | SHYAM SAMRUDDHI | Shyam Samruddhi is a novel combination of organic, N,P,K,S, and amino fertilizer source providing Zn, Fe, Me, Boron microelements in bioavailable form. Shyam Samruddhi acts as excellent soil conditioner improving white root development, enhancing crop quality, vitality & texture. Shyam Samruddhi is applicable to vegetable, horticulture trees, cereals and field crops with compatibility to urea like other fertilizers. | Organic Nitrogen Source-10.00% Organic Phosphorus source – 01.00% Organic Potash Source -01.50% Organic Sulphur – 12.00% Humic Acid 04.79% Glutamic Acid 04.65% Methionine 0.40% Phenylalanine .45% Lysine 0.32% Arginine 0.25% Glycine 0.30% Additives 0.34% Organic Matter – 60.00% | Organic Slow Release Soil Manur | 3105 or 3105 90 90 | 5% or 18% | Packages of gross weight not exceeding 10 KGS |
| 3. | SJ-NINJA | SJ-Ninja is a micronutrient liquid supplying zinc and copper as a nutrient source to plants. SJ-Ninja is with pure natural properties safe to the crops & human. SJ-Ninja can be included in IPM programme. SJ-Ninja also increases plant immunity. | Algal extract 10% Organic copper 0.03% Zinc. 0.9% Stabilizer 10% Aqua Q.S. | Micronutrient liquid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container or put-up in unit container |
| 4. | SJ-ERASER | SJ -Eraser is a unique micronutrient liquid fomulation: SJ-Eraser gives result in 48 to 72 hours. Plant vigour and strength is developed due to use of SJ-Eraser. SJ-Eraser enhances plant immunity. SJ-Eraser can be included in IPM programme. | Algal extract 10% Nitrogen 0.4% Potash 0.2% Stabilizer 10% Aqua Q.S. | Micronutrient liquid formulation | 3101 00 99 | Nil Or 5% | Other than those put-up in unit container or put-up unit container |
| 5. | Q-PRAX | Q-Prax is a novel liquid microfertilizer. Q-Prax promotes carbohydrate and protein formation. Q-Prax activates lignin synthesis and photosynthesis of plants. Q-Prax makes plant more tolerant to epidemics. | Algal extract -10% Organic copper – 0.6% Stabilizer – 10% Solvent – Q.S. | Microfertilizer liquid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container put-up in unit container |
| 6. | TELNAR | Telnar a unique micronutrient liquid. Telnar helps plant to achieve better yield. Telnar removes micronutrient deficiency: Telnar helps plant to become more resistant against bacterial pathogenic attack Telnar can be included in IPM programme. | Algal extract 10% Copper- 0.6% Emulsifiers – 05% Stabilizers – 05% Solvent Q.S. | microfertilizer liquid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container or put-up in unit container |
| 7. | VK’S NEMO | VK’s NEMO is a specialised microfertilizer liquid. VK’s NEMO converts more amino acids in proteins. VK’s NEMO on soil application enhances starch production and root development. VIC’s NEMO also increases plant immunity against nematode infection. | Algal extract 04% Camelia dust 03% Organic copper 03% Organic zinc 0.6% Stabilizer 10% Aqua Q.S. | Microfertilizer liquid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container or put-up in unit container |
| 8. | STRESS OUT | Stress Out is an excellent supplement to regular, fertilizer program. Stress Out increases overall yield and quality of plant by Increasing nitrite reductase activity and decreases residual nitrite and nitrate, Stress Out helps the plant to sustain against adverse stresses by activating enzymes of antioxidant defence system. Stress Out enhances color, sugar content and firmness of fruits and flowers, Stress Out is a residue-free formulation. | Fungal extract 10% Zinc 0.3% Antifoam agent – 05% Stabiliser -10% Solvent -Q.S. | Organic manure quid | 3101 00 99 | Nil or 5% | Other than those put-up in unit container or put-up in unit container |
Statement containing the applicant’s interpretation of law and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant’s view point and submissions on issues on which the advance ruling is sought).
1. As per Customs Tariff Acts, 1975; HSN 3101 cover goods of animal or vegetable Fertilizers, whether or not mixed together or chemically treated; Fertilizers produced by the mixing or chemically treatment of animal or vegetable products.
2. The Products mentioned in enclosed list contain Animal or Seaweed Plant extract, Nitrogenous, pottassic Fertilizers & Micronutrients. It not just grows the plant, but also enhances the immunity of plant against several diseases.
3. The goods manufacture and supplied by us cover under Organic Fertilizers and the same has been certified by the INDOCERT, BIOCERT (institute / authorities) appointed under National programme for organic Production, Department of Commerce, New Delhi.
4. Therefore, according to us products correctively classify under HSN 3101 or 3105. M/s. (Alligo Agrovet Pvt Ltd.) formally known as Alligo Horizon Pvt Ltd. Situated at. 1025/A 402/B, 4th Floor, Shanta Madhav Sankul, Trimbak Road, Tidke Colony, Nashik, Maharashtra, 422008 having GSTIN No. 27AAHCA8881H1Z8.
We are engaged in manufacturing of Organic Fertilizers. We seek clarification on classification and GST rate applicable for our manufacturing goods. The list of goods along with its use, leaflets and products certificate and GST rate applicable according to us already submitted with the application.
We intend to add / submit following in our submission;
1. HSN 3101 cover goods of animal or vegetable Fertilizers, whether or not mixed together or chemically treated; Fertilizers produced by the mixing of chemically treatment of animal or vegetable products or Organic fertilizers.
2. HSN 3105 cover goods of Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium.
3. Our manufacturing products mentioned in enclosed list contain Animal or Seaweed, Plant extract, Nitrogenous, pottassic fertilizers, & Micronutrients. It not just grows the plant, but also enhances the immunity of plant against several diseases. Therefore, products squarely cover under HSN 3101 and 3105.
4. The goods manufacture and supplied by us under brand name and specifically cover under Organic fertilizers and the same has been certified by the INDOCERT, BIOCERT (institute / authorities) appointed under National programme for organic Production, Department of Commerce, New Delhi. Copy of certificate already submitted with the application.
5. Our products cover under Schedule I (CGST 2:5%) of Serial no. 182 and 182D of Notification No. 01/2017-Central Tax (Rate) dtd: 28-06-2017. The Para of Notification reproduce below for your ready reference;
Notification No. 01/2017-Central Tax (Rate) dtd. 28-06-2017, Schedule I
GST 2.5 per cent. in respect of goods specified in Schedule:-
| 182. | 3101 | All goods i.e. animal or vegetable fertilizers or organic fertilizers put up in unit containers and bearing a brand name |
| 182D | 3105 | Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers, goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg, other than those which are clearly not to be used as fertilizers ;) |
6. According to us as mentioned in Para 3 above our products cover under HSN 3101 and 3105 organic fertilizers respectively; and contain Animal or Seaweed Plant extract, Nitrogenous, pottassic fertilizers & Micronutrients. 5% GST rate for branded goods. The detail classification of products already submitted with the application.
7. on the basis of above information kindly advice / clarify us classification and GST rate applicable for our manufacturing goods.
04. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verbatim, could be seen thus-
Fact 1:- Dealer M/s. ALLIGO AGROVET PVT LTD, has applied for advance ruling Dealer is seeking clarification on classification and GST rate applicability on the following mentioned(given in table) products which dealer claimed organic fertilizer.
Fact 2:- Definition of organic fertilizer, as per order no. 11-3/83- STU, Govt of India ministry agriculture and rural development (Department of Agriculture and co-operation) New Delhi, date. 25th Sep 1985 The fertilizer (Control) Order 1985.
Definition:- Fertilizer means any Substance used or intended to be used as a fertilizer of the soil and/or crop and specified in Part A of Schedule I and includes a mixture of fertilizer and special mixture of fertilizers provisional fertilizer, customized fertilizer, Biofertilizers specified in Schedule Il and organic fertilizers specified in Schedule iv.
Schedule – IV
[see clause 2(h) and q)] Part -A
SPECIFICATION OF ORGANIC FERTILISER
1. City compost:
| (i) | Moisture, per cent by weight | 15.0-25.0 |
| (ii) | Colour | Dark brown to black |
| (iii) | Odour | Absence of foul odour |
| (iv) | Particle size | Minimum 90% material should pass through 4.0 mm IS Sieve |
| (v) | Bulk Density (g/cm3) | 0.7 -0.9 |
| (vi) | Total Organic Carbon, | 16.0 |
| Per cent by weight, Minimum |
|
| (vii) | Total Nitrogen (as N) | 0.5 |
| Per cent by weight, Minimum |
|
| (viii) | Total Phosphates(as P205) | 0.5 |
| Per cent by weight, Minimum |
|
| (ix) | Total Potash (as K20) | 1.0 |
| Per cent by weight, Minimum |
|
| (x) | C:N ratio | 20 : 1 or less |
| (xi) | pH | 6.5 – 7.5 |
| (xii) | Conductivity (as dsm-1), Not more than | 4.0 |
| (xiil) | Pathogens | Nil |
| (Xiv) | Heavy metal content, (as mg/Kg) per cent by weight, Maximum |
|
| Arsenic (as As2O3) | 10.00 |
| Cadmium (as Cd) | 5.00 |
| Chromium (as Cr) | 50.00 |
| Copper (as cu) | 300.00 |
| Mercury (as Hg) | 0.15 |
| Nickel (as Ni) | 50.00 |
| Lead (as Pb) | 100.00 |
| Zinc (as Zn) | 1000.00 |
2 Vermiqompost :
| (i) | Moisture, per cent by weight | 15.0-25.0 |
| (ii) | Colour | Dark brown to black |
| (iii) | Odour | Absence of foul odour |
| (iv) | Particle size | Minimum 90% material should pass through 4.0 mm IS sieve |
| (v) | Bulk density (g/cm3) | 0.7 -0.9 |
| (vi) | Total organic carbon, per cent by weight, minimum | 18.0 |
| (vii) | Total Nitrogen (as N), per cent by weight, minimum | 1.0 |
| (viii) | Total Phosphate (as P2O5), per cent by weight, minimum | 0.8 |
| (ix) | Total Potassium (as K2O), per cent by weight, minimum | 0.8 |
| (x) | Heavy metal content, (as mg/Kg), maximum |
|
| Cadmium (as Cd) | 5.0 |
| Chromium (as Cr) | 50.00 |
| Nickel (as Ni) | 50.00 |
| Lead (as Pb) | 100.00 |
3. Pressmud :
| (i) | Moisture, per cent by weight, Maximum | 15.0 |
| (ii) | Total Nitrogen (as N) per cent by weight, Minimum | 1.80 |
| (iii) | Total Phosphorous(as P2O5) per cent by weight, Minimum | 2.00 |
| (iv) | C:N ratio, Minimum | 10:1 |
| (v) | Total Potassium (as K2O) per cent by weight, Minimum | 1.40 |
| (vi) | PH | 7.0-8.0 |
| (vii) | Heavy metal content, (as mg/Kg) per cent by weight, Maximum |
|
| Arsenic (as As 2O3) | 10.00 |
| Cadmium (as Cd) | 5.00 |
| Chromium (as Cr) | 50.00 |
| Copper (as Cu) | 300.00 |
| Mercury (as Hg) | 0.15 |
| Nickel (as Ni) | 50.00 |
| Lead (as Pb) | 100.00 |
| Zinc (as Zn) | 1000.00 |
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