The Rajasthan Authority of Advance Ruling (AAR) ruled that Mehendi /Henna powder is covered under Chapter 33 and will attract GST @18% (CGST 9% and SGST 9%).
The applicant, Sunil Kumar Gehlot is engaged in the manufacture of hair dye powder in Sojat city. The applicant intends to manufacture Mehandi/henna powder in the future and so wish to seek clarification on the classification and rate of GST applicable on the Mehandi/henna powder.
The applicant sought the advance ruling on the issue of whether henna is classifiable under chapter 14 or 33.
The Authority consisting of members J.P. Meena and Hemant Jain observed that it is a well-known fact that Henna/Mehendi powder has a natural property of dye/tanning and is generally used as hair dye.
Therefore, the AAR observed that the product is rightly classifiable under chapter heading 3305 as preparations for use on the hair and covered under amended Notification No. 41/2017-Central Tax (Rate) dated 14 November 2017 of the principal notification no. 01/2017-Central Tax (Rate) dated 28.06.2017 and attracts 18% GST (CGST 9% and SGST 9%).
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