18% GST on Mosquito Repellent ‘Aayudh-Mosx’: AAR [Read Order]

18% GST on Mosquito Repellent ‘Aayudh-Mosx’: AAR [Read Order]

GST on Mosquito Repellent - Aayudh-Mosx - AAR - Taxscan

The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST on mosquito repellent ‘Aayudh-Mosx’.

The applicant, M/s. Shukla Ashar Impex Private Limited is engaged in the manufacturing of Mosquito Repellent, named it as ‘Aayudh-Mosx’, which is their brand name. They are manufacturing the above item for the purpose of use on the skin to ward off mosquitoes.

The Aayudh-Mosx is a certified Ayurvedic mosquito repellent. Unlike other mosquito repellents in the market, AAYUDH-MOSX is made from all-natural plant extracts and does not contain DEET. Users can simply spray Aayudh-Mosx on exposed skin and surrounding areas toward mosquitoes. AAYUDH- MOSX is safe on sensitive skin and does not sweat easily like other cream- based repellents. In addition, Aayudh-Mosx is safe for new-borns and infants and safe upon accidental ingestion.

The applicant sought the advance ruling on the issue in respect of product Aayudh-Mosx whether classifiable under Heading 30049011 or 38089191.

The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that hold that the product in question i.e. ‘Aayudh-Mosx’, is a mosquito repellent used on the skin to ward off mosquitoes and, hence, same is classifiable under Chapter Heading No. 3808 91 91 of the Customs Tariff Act, 1985 and not as a ‘medicament’ under Heading No. 3004. AAYUDH-MOSX’, being a mosquito repellent, attracts 18%  GST (CGST 9% and SGST 9%), as per Sl. No. 87 of Schedule-III to the Notification No.01/2017-Central Tax (Rate) dated June 28, 2017.

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