Dhathri Ayurveda’s “Dhathri Dahasamani” Classifiable as Mixed Condiments and Mixed Seasonings, 12% GST Applicable: AAR [Read Order]

The Kerala Authority for Advance Ruling (AAR), Thiruvananthapuram has held that the product of Dhathri Ayurveda Private Limited called “Dhathri Dahasamani”, which is used as a flavour and taste component in drinking water, shall be classified as Mixed Condiments and Mixed Seasonings under the Heading 2103 90 40 of the First Schedule to the Customs Tariff Act, 1975, attracting Goods and Services Tax (GST) at the rate of 12%.

The applicant, M/s. Dhathri Ayurveda Private Limited is the sole distributor of the products produced by M/s. Warriers Hospital and Panchakarma Centre, Velanchira, Kayamkulam, Alappuzha.

The applicant, represented by Sri. Soman N.L., had sought an advance ruling to determine the correct classification and applicable GST rate for its product called “Dhathri Dahasamani”.

The AAR observed that the product primarily consists of a mixture of dried herbs and spices, including ingredients such as Chukku (Ginger), Karingali, Pathimukam, Ramacham, Naruneendi, and Chandanam that is added to boiling water mainly for its aromatic, flavouring or seasoning properties.

While Chukku falls under Chapter 9, the majority of the ingredients fall under Heading 1211 of Chapter 12. Based on this analysis, the AAR concluded that 92% of the ingredients fall under Heading 1211, making it predominantly a mixture of condiments/seasonings.

The authority comprising of Dr. S.L. Sreeparvathy, IRS, Additional Commissioner Central Tax and Shri Abraham Renn S, IRS Additional Commissioner State Tax clarified that the product is not capable of being consumed as a food item on its own and is mainly used for flavouring or enhancing the taste of water. Thus, it is correctly classified under Heading 2103 90 40 - Mixed condiments and mixed seasoning.

The ruling also clarified the applicable tax rate for the product, which is 12% (6% CGST + 6% SGST) as per Entry at SI. No. 44 of Schedule II of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017.

This ruling emphasised the classification of goods based on their essential character, functional utility and primary usage providing clarity regarding the proper classification and tax treatment of other similar ayurvedic and herbal products in the industry.

To Read the full text of the Order CLICK HERE

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