Gujarat AAR in the case of M/s. Novozymes South Asia Pvt. Ltd.

Case Covered:

M/s. Novozymes South Asia Pvt. Ltd.

Facts of the Case:

The applicant vides their application for Advance Ruling has submitted that they are engaged in the manufacture and taxable supply of biofertilizers namely RhizoMyx and Rhyizomyco. They have stated that mycorrhiza & endomycorrhiza are active ingredients in these products, the other items being humic acids, seawater kelp extracts, etc. are inert materials; that as per Section 2(aa) of the Fertiliser (Control) Order, 1985, BIofertiliser is defined as below:

“(aa). Biofertiliser means the product containing carrier-based (solid or liquid) living microorganisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilization, or nutrient mobilization, to increase the productivity of the soil and/or crop/”.

Observations:

We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by their representative Shri Jayaram Hiragange at the time of personal hearing. We have also considered the issues involved on which Advance Ruling is sought by the applicant.

At the outset, we would like to state that the provisions of both the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the GGST Act.

Ongoing through the submission given by the applicant, we find that they are engaged in the manufacture and taxable supply of biofertilizers namely RhizoMyx and Rhyizomyco; that mycorrhiza & endomycorrhiza are active ingredients in these products, the other items being humic acids, seawater kelp extracts, etc. are inert materials. The applicant put forward the following question on which Advance Ruling is required as under:

Whether the bio agricultural products i.e. RhizoMyx and Rhizomyco are classifiable under :

Chapter 3101- All goods i.e. animal or vegetable fertilizers or organic fertilizers put up in unit containers and bearing a brand name-Entry No.182 of Schedule-I of the rate of GST on Goods comprising of ‘List of Goods at 2.5% Rate’ or

Chapter 3002-Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of micro-organisms (excluding yeasts) and similar products- Entry 61 of Schedule-II of the rate of GST on Goods, comprising of ‘List of Goods at 6% Rate’

Ruling:

The products ‘Rhyzomyx’ and ‘Rhyzomyco’ manufactured and supplied by M/s. Novozymes South Asia pvt. ltd., is covered under Entry Sr.No.61 of Schedule-II of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 of the CGST Act, 2017 on which rate of GST chargeable is 12% (6% SGST +6% CGST).

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