The Gujarat Appellate Authority of Advance Ruling (AAAR) has held that 18% GST is payable on Rapigro, which is a plant growth regulator.
The bench of Sunil Kumar Mall and Rajeev Topno while upholding the AAR’s ruling observed that the classification of Rapigro under the Customs Tariff Act, 1975 and under the Central Goods & Services Tax Act, 2017 will be under 38089340, as a ‘plant growth regulator.
The appellant, Jivagro Limited is engaged in manufacture, import, export, wholesale, retail sale and distribution of Agro Chemicals, Bio-Control, Agri-Inputs and Bio-Stimulants, including Rapigro Liquid as well as Rapigro Granules.
The appellant sought the advance ruling in respect of the classification of Rapigro under the Customs Tariff Act, 1975; classification of Rapigro under the Central Goods & Services Tax Act 2017; and Rate of tax payable on Rapigro.
The AAR held that 18% GST is payable on Rapigro after going through the analytical composition provided by the applicant there is no mention or inclusion of secondary or micro nutrients, for the product to fall under fertilizers; further, the analytical composition does not lead to the conclusion that Nitrogen, Phosphorus or Potassium is the constituent giving essential character to the product Rapigro.
The appellant challenged the AAR’s order on the ground that for classification of the product as PGR under 3808, in terms of note 1(a)(2), of chapter 38, the product should be separately defined chemical element or compound & should be put up in forms or packaging for retails sale or as preparations or articles; that in case of Rapigro it is not a separately defined chemical element or compound & hence the same cannot be covered under chapter 38.
The AAR ruled that the appellant has not produced anything to warrant any interference with the findings of the ruling.
Ruling Details
Applicant’s Name: M/s. Jivagro Limited
Ruling Date: 2209.2025
