Willmart Enterprise vs. Na
(AAR (Authority For Advance Ruling), Gujrat)

Case Law
Petitioner / Applicant
Willmart Enterprise
AAR (Authority For Advance Ruling)
Aug 11, 2021
Order No.
TR Citation
2021 (8) TR 5012
Related HSN Chapter/s
31 , 3102
Related HSN Code



The applicant, M/s. Willmart Enterprise, supplies Ammonium Sulphate. The applicant submits that the product has agricultural as well as non-agricultural use as follows:

(A) Agriculture use: The product can be used as fertilizers for increasing soil and land fertility. It can be either used as such, by way of fertilizer or in manufacture of other complex fertilizer that are used for agriculture purposes (say crop or soil fertilizer) or even otherwise in any other form of which the most common use of this fertilizer is to fertilize the soil i.e. used to alkine soil for lowering the PH balance of soil and also for contributing essential nitrogen for plant growth, as an agricultural spray adjuvant for water soluble insecticides, herbicides and fungicides.

(B) Non agriculture use: Any other use of the product other than agriculture use as mentioned above are treated as non-agriculture use. It also has food additive and laboratory uses. It can also be used for treatment of drinking water along with chlorine, for preparation of ammonium salt, in textile industry for dyeing purpose etc.

3. The applicant submits that they supply fertilizers to different types of customers having both the purposes i.e. agriculture purpose and/or non-agriculture; that the proprietor has set an unwritten business policy to demand from their prospective customers the NOC as issued to them by Directorate of Agriculture to determine whether the product has agriculture use or non-agriculture use and upon receipt of the NOC, the applicant goes through the same to confirm whether the NOC is specifically issued for the product and validity of the same; that the applicant also obtains the declaration from the prospective customers declaring the use of the product as ‘agriculture’ and once both i.e. NOC and declaration are received, this sales transaction is treated by the applicant as sale of product for the agriculture purpose. The NOC from the Directorate of Agriculture as referred herein above is required to be obtained by those enterprise/units who are intending to sell or offer for sales or carrying on the business of selling of agricultural fertilizer.

4. As regards their interpretation of law, the applicant submits that on comparing their product composition with the description of two HSN entries as provided in Notification No.1/2017-Central Tax (Rate) dated 28-6-17 from which the following conclusion is drawn:

(i) Sr.No.182A in the Schedule I to the Notification No.1/2017-Central Tax (Rate) dated 28-6-17.

‘Minerals or chemical fertilizers, nitrogenous, other than those which are clearly not to be used as fertilizers.”

(ii) Sr.No.42 of the Schedule III to the Notification No.1/2017-Central Tax (Rate) dated 28-6-17.

‘Minerals or chemical fertilizers, which are clearly not to be used as fertilizers.’

4.1 The applicant states that Sr.No.182A of the Schedule I as mentioned above covers the product under Chapter 31 having tariff item 3102 where the product is used by its customer as such as fertilizer or as fertilizer to manufacture other complex fertilizer that are used in agriculture(say crop or soil fertilizer) whereas Sr.No.42 of the Schedule III as mentioned above covers the product under Chapter 31 having tariff item 3102 where the product is not used as fertilizer; that in this regard, CBIC has issued Circular No.54/28/2018-GST dated 9-8-18 wherein it is clarified that the fertilizers supplied for direct use as fertilizers, or supplied for use in the manufacturing of other complex fertilizers for agricultural use (soil or crop fertilizers), will attract 5% IGST; that the applicant states that reference may also be drawn from the earlier issued ruling in the case of G.B.Agro Industries – Advance Ruling No.GUJ/GAAR/R/71/2020 dated 17.09.2020.

Question on which Advance Ruling sought?

5. The applicant has sought Advance Ruling on the following questions:

1. Whether the classification of product under HSN 3102 is correct?

2. Whether the applicant is eligible to avail the benefit of charging concessional rate of GST of 5% on outward supply of its product for the purpose of agriculture?

3. Rate of GST on outward supply of product for the purpose of non-agriculture should be charged @ 18%?

Revenue’s Submission:

6. The Assistant Commissioner of State Tax, Unit-56, Ankleshwar has submitted as follows:

(1) The activity/service in respect of which an Advance Ruling has been sought is an ‘Ongoing Activity’.

(2) The questions/issues raised in the application are not pending or decided at ‘Unit-56 level’ in any proceedings in the case of the applicant as of today.

(3) The application cannot be admitted for granting Advance Ruling considering the following reasons: “The activity which is carried out by the supplier is already classified under Chapter 31 of the Customs Tariff Act, 1975 which covers fertilizers.

(4) Circular is already issued for the Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- vide Circular No.54/28/2018-GST dated 9-8-2018.

Personal Hearing:

7. Shri Kunal Agrawal, C.A. appeared for the hearing (Video Conferencing) on 27-7-2021 and reiterated the contents of the application.


8. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act.

9. We note that the Revenue maintains that subject application cannot be admitted. However, we find no deficiency in the said application and find it fit to be admitted. We proceed with our findings.

10. We have carefully considered all the submissions made by the applicant. We find that there is specific entry for ‘Ammonium sulphate’ at CTH 310221. As per HSN Explanatory Notes, Ammonium Sulphate, whether used as fertiliser or not, is to be classified at CTH 310221. We note that applicant is a wholesale supplier, as per its submission. Further, we have perused the Notification 1/2017- CT(R) and the CBIC Circular dated 9-8-18 as cited by the applicant.

11. We issue the Ruling:


1. ‘Ammonium Sulphate’ is classifiable at HSN 310221.

2. GST of 5% is leviable on Ammonium Sulphate supplied for direct use as fertilizers or used in the manufacturing of complex fertilizers for agricultural use (soil or crop fertilizers).

3. GST of 18% is leviable on Ammonium Sulphate supply for other than fertilizer use.

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